Why is the use of a single activity base

Assignment Help Financial Accounting
Reference no: EM132505491

Question 1: Why is the use of a single activity base inappropriate for some companies?

Question 2: Explain how activity-based costing can improve overhead cost allocation in companies that produce a diverse line of products.

Question 3: Why is the use of direct labor hours as an activity base likely to be inappropriate in a highly mechanised production facility?

Reference no: EM132505491

Questions Cloud

What will be the reaction of the shareholders : It is profitable for companies not to declare any dividend even when they are making good profits. What will be the reaction of the shareholders? Discuss.
What would the balance sheet section for bonds : What would the balance sheet section for bonds look like after retirement of the bonds? information extracted from the books of Acme Company on November.
What is the value of the stock at the beginning : What is the value of this stock at the beginning of 2013 when the required return is 14.8 percent? This growth is expected to continue.
Compute the value of this stock price in five years : Compute the value of this stock price in five years. Calculate the present value of these cash flows using an 8 percent discount rate.
Why is the use of a single activity base : Explain how activity-based costing can improve overhead cost allocation in companies that produce a diverse line of products. Why is use of a single activity
What is decrease to be recorded in the income statement : If provision for doubtful debts is maintained at 5%, what is the increase/decrease to be recorded in the income statement? Current provision for doubtful debts
Complete the effective interest rate amortization table : Prepare journal entries to record the issuance of the bonds on October 1, 2018, required for April 1, 2019 transactions regarding this bond issue
Find a simpler DNF equivalent : Make and expand a tableau with the formula at the root - Find a simpler DNF equivalent if possible - For each of the following propositional formulas
What journal entry would be made at the date of retirement : What would the balance sheet section for bonds look like after retirement of the bonds? What journal entry would be made at the date of retirement?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Purpose a statement of revenues and changes in fund balance

Purpose a Statement of Revenues, Changes and Expenditures in Fund Balance for the debt service fund

  Prepare trading and profit and loss account

Prepare Trading and Profit and Loss Account for the year ended on Mar 31, 2009 and a Balance Sheet on that date after considering the Depreciate land and building

  What would you encourage club to do concerning contestant

What would you encourage the Club to do concerning the Contestant Hospitality Tent? Calculate dollars of ticket sales needed to earn a target profit of $6,000.

  Prepare contribution margin income statement

Belmont Company currently produces and sells 7,000 units annually of a product that has a variable cost of $19 per unit and annual fixed costs of $175,000. The company currently earns a $84,000 annual profit. Use the equation method to determine the ..

  What is the cost of budgeted purchases of direct materials

Norton Manufacturing expects to produce 2,800 units in January and 3,800 units in February. Norton budgets $50 per unit for direct materials. Indirect materials are in significant and not considered for budgeting purposes. Desired ending balance for ..

  What part do accruals play in this difference

What were two important findings or implications of this research? Explain why profits and cash flow from operations are not equal and what part do accruals play in this difference?

  Show journal entries to record first two interest payments

Show the journal entries to record the first two interest payments on these bonds. Ignore year-end accruals of interest. (Credit account titles)

  Net present value of project that has initial cash outflow

What is the net present value of a project that has an initial cash outflow of $12,670 and the following cash inflows? The required return is 11.5%.

  Journalize the foregoing transactions

Journalize the foregoing transactions and post to the T-account and show how to report the short-term investment on the cablevision balance sheet at December 31.

  What is the present value of the interest tax shield

What is the present value of the interest tax shield, assuming its risk is the same as the loan - Suppose Arnell pays interest of 6% per year on its debt

  What is the campanys revenue recongnition policy

Calculate general administrative , and selling expenses of sales for the years ended January 31, 2009, and January 31, 2008, By what percent did these expenses increase or decrease from fiscal year 2007 and 2008? The company's fiscal year ends on ..

  Determine discounted payback period of the proposed project

Determine The discounted payback period of the proposed project and The payback period of the proposed investment (assume that cash inflows occur evenly throughout the year).

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd