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Explain Activities uses through activities based costing
In order to correctly associate costs with products and services. ABC assigns cost to activities based on their use of resources. It then assign cost to cost objects such as products or customers based on their use of activities. ABC can track the flow of activities in organization through for core areas:
1) Cost object
2) Activities
3) Cost pool
4) Cost drivers
Characteristics of product life cycle The major characteristics of life-cycle concept are as follows: 1) The products have finite live and pass by the cycle of development i
Carrying costs of inventory These are costs incurred because the firm has decided to maintain inventories. They generally consist of: • Stock-out costs • Insurance co
Going rate or follow the crowd pricing:- In this method the firm price its products at the similar level as that of the competition. This method supposes that there will be no
if equipment will be depreciated on a straight-line depreciation basis over a five year period with an estimated residual value, what do I do with this information in a investment
CHOOSING ORDER QUANTITY (SIZE—PROBLEM) The objective of inventory decisions is usually to minimize total inventory costs to the company. Costs are ascribed to all elements whic
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