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allocate cost arbitrarily
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What is the major problem in cost accounting?
The major problem in cost accounting is allocation of common and joint costs to individual products.
What is the Formula for cost allocation rate?
allocation rate=cost pool amount/ cost driver volume
Is the selection of an appropriate cost allocation base more important for a single-stage cost allocation system than it is for a two-stage cost allocation system?
no
What is prime cost as used in cost accounting?
Prime cost in cost accounting refers to the total direct costs incurred in the production of goods or services. It includes expenses directly tied to manufacturing or service delivery, like raw materials, labor wages, and direct production-related expenses. Prime cost excludes indirect costs such as rent, utilities, and administrative salaries. It's a fundamental concept for businesses to determine the core expenses associated with their primary activities, helping them calculate product or service pricing, analyze cost efficiency, and make informed decisions about production processes and resource allocation.
How do you reallocate a transaction amoung multiple accounting codes?
On the allocation tab add another space for a code and specify another accounting code
What is the major problem in cost accounting?
The major problem in cost accounting is allocation of common and joint costs to individual products.
What is cost absorption in cost accounting?
Simply: allocation of cost to a cost centrehttp://www.answers.com/topic/cost-absorption:Allocation of cost to a product, process, or department using a rational allocation basis. For example, rent expense can be allocated to a department based on square footage.
What is the Formula for cost allocation rate?
allocation rate=cost pool amount/ cost driver volume
Is the selection of an appropriate cost allocation base more important for a single-stage cost allocation system than it is for a two-stage cost allocation system?
no
What are the major classifications of accounting?
Financial accounting refers to accounting refers to accounting for revenues, expenses, assets, and liabilities. It involves the basic accounting processes of recording, classifying, and summarizing transactions. - Cost accounting is the branch of accounting dealing with the recording, classification, allocation, and reporting of current and prospective costs. - Managerial accounting is the branch of accounting designed to provide information to various management levels in the hospitality operation for the purpose of enhancing controls.
What is cost objectives?
Cost objectives determines the cost allocation. It determines the product, service or department that will receive the allocation.
What if your accounting code structure is the basis for which other?
Transaction Allocation and management
Is cost allocation base a cost driver?
Yes, it is. When used for allocating costs, a cost driver is often called a cost-allocation base
What if your accounting code structures is the basis for what other functions?
Transaction Allocation and management
Which elements does an allocation rule link together?
An MCC group and an accounting code
Why cost accounting is used instead of financial accounting?
cost accounting is used instead of financial accounting because cost accounting is used to determine the cost of the good produced
What is prime cost as used in cost accounting?
Prime cost in cost accounting refers to the total direct costs incurred in the production of goods or services. It includes expenses directly tied to manufacturing or service delivery, like raw materials, labor wages, and direct production-related expenses. Prime cost excludes indirect costs such as rent, utilities, and administrative salaries. It's a fundamental concept for businesses to determine the core expenses associated with their primary activities, helping them calculate product or service pricing, analyze cost efficiency, and make informed decisions about production processes and resource allocation.
