Reasons for cost allocation, Cost Accounting

Assignment Help:

Reasons for Cost Allocation

1. To provide comparison along with externally provided services:  It helps in assessing where to continue the contact or service outsiders.

2. To facilitate ideas on the efficiency of service departments: It assists to determine where a service department is operating efficiently and its size is optimal.

3. To discourage unnecessary service via some managers like they identify they'll be charged.

4. To facilitate opportunity for cost price-quality tradeoffs: Cost allocation assists to remove friction among departments. Since a user department such demands higher quality recognizes that it will contain to bear higher costs.


Related Discussions:- Reasons for cost allocation

Compute the internal rate of return, ABC bond is a 20-year bond with face v...

ABC bond is a 20-year bond with face value $1000. The coupon payment is $25 per 6 months. The semi-annual yield is 4%. Use the PV function in Excel (or equivalent) to Önd the price

Compute the cost of good sold and the ending inventory value, Beginning inv...

Beginning inventory on March 1 consisted of 2,000 units each costing $11.20. During March, the following was purchased for inventory: Date Purchase

introduction of internal rate of return , Introduction of Internal Rate of...

Introduction of Internal Rate of Return The traditional internal rate of return (IRR) method of project selection has been shown to be inferior to the NPV method due to vario

MATERIALCOSTING, what are the material management questions

what are the material management questions

Computing information, This coursework is intended to help you develop your...

This coursework is intended to help you develop your understanding of shell scripting in both a Windows and Unix environment. You should undertake this coursework in groups cons

Economic order quantity, Economic Order Quantity This constitutes the...

Economic Order Quantity This constitutes the quantity purchased of either raw materials or stocks which is considered most optimum. It is the quantity such minimizes both ord

Factors affect decision making, Factors affect Decision Making These d...

Factors affect Decision Making These decisions need consideration of factors as like A. The level of market possible to be available in future B. The strategy that compe

Analysing changes in working capital, By understanding the financial statem...

By understanding the financial statements of a company, one of the first steps considered is the study of the changes in current financial position of the company and the purpose f

Typical causes of labour variances, Typical Causes of Labour Varian...

Typical Causes of Labour Variances Labour Rate Variances a) Higher rates being paid than planned because of wage raise awards. b) Lower or Higher grade of work

Labour Costs and Overhead Costs, Labour Costs and Overhead costs Labo...

Labour Costs and Overhead costs Labour Costs Labour costs can be indirect or direct labour costs. Direct labour cost refers to wages paid to workers who such are directly

Write Your Message!

Captcha
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