Question: Most organisations use a year, rather than a week or a month, as the period over which to calculate budgeted cost-driver rates.This is because for

Most organisations use a year, rather than a week or a month, as the period over which to calculate budgeted cost-driver rates.This is because for theAnswer

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reason, the longer the time period, theAnswer

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the influence of seasonal patterns, and forAnswer

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reason, the longer the time period, theAnswer

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the effect of variations in output levels on the allocation of fixed costs.

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-costing may result in overpricing and competitors entering a market and taking market share for products that a company erroneously believes are low-margin or even unprofitable.

Answer

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-costing may result in companies selling products on which they are in fact losing money, when they erroneously believe them to be profitable.

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