Why do companies allocate costs? What are some of the advantages and disadvantages to doing so?

Question:

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 26, 2012 02:39 AM

See More Questions

What are some of the advantages and disadvantages of database forms?
What are some of the advantages and disadvantages of using a celebrity spokesperson to promote a good or service? How might this affect a firm's public relations efforts?
What are some of the advantages and disadvantages of Japanese keiretsus?
A company is implementing Dynamics 365 Supply Chain Management. The company plans to implement the solution in a phased approach across several incremental projects. The project manager needs a...
The balance sheet and income statement data for Howard Bannister Company follow. (For the balance sheet data, the end-of-year information is in the left column.) Additional information for Howard...
A 2.00-mol sample of oxygen gas is confined to a 5.00-L vessel at a pressure of 8.00 atm. Find the average translational kinetic energy of an oxygen molecule under these conditions.
Verify the vector identity \[\begin{equation*}abla^{2} \boldsymbol{v}=abla(abla \cdot \boldsymbol{v})-abla \times(abla \times \boldsymbol{v}) \tag{15.83}\end{equation*}\]
Mississippi Manufacturing, Inc., reported the following at December 31, 2014 and December 31, 2015: Stockholders Equity Preferred stock, cumulative, $2.00 par, 6%, 70,000 shares issued .... $ 140,000...
X = 1.2 For I = 1 To 5 Step 2 X = X + X^2 Next I MsgBox("I " = & Str()) 11 MsgBox ("X = & Str (X)) What does the first MsgBox display?
Given a database of the results of an election, find the number of seats won by each party. There are some rules to going about this: There are many constituencies in a state and many candidates who...
Refer to Integrative Case 9-48 in Chapter 9. Assume that all of the facts in Case 9-48 still hold except that the practical capacity of the machinery is 20,000 hours instead of 10,000 hours. Required...
What are the similarities and differences among the direct method, the step method, and the reciprocal method of allocating costs?
Describe advantages and disadvantages of mandatory firm rotation.
Find the APR in each of the following cases: You must show all your work to earn credits. APR Number of Times compounded per year EAR ? Semiannually 11.0% ? Monthly 11.9% ? Weekly 9.6%
Assume a bond sells at 97.75 (pays 8% interest). What is the total interest Micah will receive at the end of each year if he buys four bonds?
Describe the Daily Construction Diary, In your description, include. 1. why this is such an important document and who should maintatain one? 2. some of the information that should be recorded each...
What kind of test and evaluation assesses the system in the intended operational environment to determine if it addresses end-users needs?
Evaluate SEJ's product portfolio within the context of short life spans - long lead times (20% of assignment mark) The guidelines for the evaluation provided here including the word count Element...
If net sales are $400,000, cost of goods sold is $310,000, and operating expenses are $60,000, the gross profit is: (a) $30,000. (b) $90,000. (c) $340,000. (d) $400,000.
TRUE OR FALSE: 1. Banks with a significantly large share of fixed-interest rate home loans are less exposed to interest rate risks. 2. Although Australian banks are pretty big, they are not...
Discuss what is meant by brokerage and asset transformation. What factors determine the value of brokerage services?
EZ-Seat, Inc., manufactures two types of reclining chairs, Standard and Ergo. Ergo provides support for the body through a complex set of sensors and requires great care in manufacturing to avoid...
College Supply Company (CSC) makes three types of drinking glasses: short, medium, and tall. It presently applies overhead using a predetermined rate based on direct labor-hours. A group of company...
Utica Manufacturing (UM) was recently acquired by MegaMachines, Inc. (MM), and organized as a separate division within the company. Most manufacturing plants at MM use an ABC system, but UM has...
During October 2 0 2 3 , Fern Field Farms, Inc. received $ 1 0 , 0 0 0 from customers in exchange for fruit and vegetables. During the same month, the company paid $ 2 , 0 0 0 to employees, $ 5 0 0...
Given data below answer the question. Cash Accounts receivable $ 10,200 Cash dividends 15,200 Consulting revenue Office supplies 3,550 Rent expense $ 2,340 15,200 3,910 Office equipment 18,310 Land...
Last year, a city had three school districts: North with a population of 5200 children, South with a population of 10600 children, West, with a population of 15100 children. Use Hamilton, Adams,...

Why do companies allocate costs? What are some of the advantages and disadvantages to doing so?

Question:

Step by Step Answer:

Companies allocate costs to estimate or assess the costs of their activities products pro...View the full answer

Fundamentals of Cost Accounting

Students also viewed these Cost Accounting questions