Cost allocation bases are ideally based on a cause-and-effect basis, but they are used to allocate fixed

Question:

Cost allocation bases are ideally based on a cause-and-effect basis, but they are used to allocate fixed overhead. Is this inconsistent?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Cost Accounting

ISBN: 978-0077398194

3rd Edition

Authors: William Lanen, Shannon Anderson, Michael Maher

See More Books

Question Posted: Apr 25, 2012 07:55 AM

See More Questions

Does a scatterplot reveal anything about a cause and effect relationship between two variables?
What is a cause and effect diagram?
Develop a cause and effect (fishbone) diagram to address everything that impacts your grade in this course. How much is under your control?
Consider the many moments of joy in the movie. Why include them? What risky acts of courage do Katherine, Mary and Dorothy take? How are they rewarded? The film shows the strong relationships that...
As indicated in Chapter 2, the GASB defines assets as "resources with present service capacity that the government presently controls." It explains that present service capacity of an asset is its...
Build your own spreadsheet. Get to the part where you can show the optimal number of guns or butter that Jeremie Galiendo should be creating. Save that spreadsheet (called butterguns1) and turn it...
If the required takeoff speed of a particular airplane is $120 \mathrm{mi} / \mathrm{hr}$ at sea level, what will be required at Denver (elevation $5000 \mathrm{ft}$ )? Use properties of the U.S....
Skulas, Inc., manufactures and sells snowboards. Skulas manufactures a single model, the Pipex. In late 2017, Skulas's management accountant gathered the following data to prepare budgets for January...
1: Explain what happens to create regional and contact metamorphism? 2: Describe radioactive decay processes and the half-life? 3: Identify and describe fault and fold types? 4: Explain 3 of the 7...
Revenue and expense data for the current calendar year for Dawg Electronics Company and for the electronics industry are as follows. Dawg Electronics Company data are expressed in dollars. The...
What criteria are important in determining the choice of an allocation base?
Why does it matter what allocation base is used to determine the predetermined rate?
On July 31, 2017, Lee Meche, MD, had the following balances in the ledger for his medical practice: Cash $8,800, Accounts Receivable $2,750, Supplies $585, Equipment $15,550, Notes Payable $10,000,...
address the following: What are the main considerations for program, portfolio, and project management? Discuss whether procurement can be eliminated or replaced by alternate organizational...
After you have read Beccaria and Lombroso, please provide a brief summary on these two theories of crime. Are these classical theories still relevant today? What are some of the criticism around...
Camille also wants to summarize the number of discounted products by product type and calculate their total and average discounted prices. In cell K2, enter a formula using the COUNTIF function that...
Managing project expectations is a central role for the project manager. How do bottlenecks limit this functionality and how can they be addressed? Under what circumstances would a project need to be...
23. Sally has hidden her brother's birthday present somewhere in the backyard. When writing instructions for finding the present, she used a coordinate system with each unit on the grid representing...
In the table in Question 2, suppose one firm has a marginal cost of $2. It is the sole firm in the industry. New firms can enter, but their marginal and average costs equal $5. a. Without the threat...
Use a calculator to evaluate the expression. Round your result to the nearest thousandth. V (32 + #)
Which type of industry has more rivalry, fragmented or concentrated, and why?
MTI makes three types of lawn tractors: M3100, M4100, and M6100. In the past, it allocated overhead to products using machine-hours. Last year, the company produced 10,000 units of M3100, 17,500...
ACE Industries is a manufacturer of machined parts located in mid-western United States. Its primary customers are suppliers to the automobile industry, although it has diversified its customer base...
California Circuits Company (3C) manufactures a variety of components. Its Valley plant specializes in two electronic components used in circuit boards. These components serve the same function and...
Mrs. Sam Taffer was a brilliant engineer at IBM and made a lot of money from stock options. Since then, she has worked as a musician and raised her two sons. She wishes to have most of her property...
Miller Company ended its fiscal year on June 30, 2017. The company's adjusted trial balance as of the end of its fiscal year is shown below. MILLER COMPANY Adjusted Trial Balance June 30, 2017...
What depreciation method is used to write off property, plant and equipment? Regarding the triple bottom line, what information did the company disclose about environmental matters in the reports?...

Cost allocation bases are ideally based on a cause-and-effect basis, but they are used to allocate fixed

Question:

Step by Step Answer:

Although it would be ideal for the cost allocation base to have causeande...View the full answer

Fundamentals of Cost Accounting

Students also viewed these Managerial Accounting questions