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How do traditional cost assignment systems assign indirect costs?
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The remaining costs, referred to as indirect costs, would be accumulated into one or more cost pools, which would subsequently be allocated to the cost objects according to volume-related bases of allocation.
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Is cost accounting systems accumulate costs and then assign them to products or services?
Yes, that is True.
What factors contributed to the emergence of activity based costing in the 1980s?
The Traditional costing system used to allocate/assign overhead costs to products by using only volume based cost drivers. In fact, these traditional systems were designed decades ago when most companies manufactured a narrow range of products, and direct labour and materials were the dominant factory costs. Overheads costs were relatively small and the distortions arising from inappropriate overhead allocations were not significant. Danish Ayub
Difference between Cost Allocation and cost apportionment?
Apportion means to assign cost based on a predetermined formula. For example, we would apportion a cost pool if the assignment of the cost was based on fixed amounts (e.g.,10 percent to cost objective one and ninety percent to cost objective two) or a three factor formula (e.g., a weighted average of sales, payroll, and asset value). In both cases the assignment of the cost is based on some predetermined method. Allocation means to assign cost on a rate or factor bases that attempts to assign cost using an allocation base that best measures a causal or beneficial relationship between the cost pool and the final cost objective.(e.g., direct labor hours, machine hours, etc.),
Access online How can you get an alert when a specific department has past due accounts?
I can set up an event driven notification for past due accounts and assign the alert to that department’s processing hierarchy position only
Is Direct-labor cost the best cost-allocation base?
This is a vague question because "cost allocation", in principle, is dependent on what cost is being allocated. The general purpose of cost allocation is to distribute cost to some object based on an equitable, consistent set of rules. Generally, the objects are fairly homogeneous and share the costs according to some correlated attribute. Characteristics such as whether the objects (products or services) are produced in a continuous or discrete production process, i.e., mass produced versus custom products, are important in determining the basis of allocation. The best practice is to identify all costs (labor, materials, machinery, facilities, etc) that can be costed directly to the object. The next allocable costs are those most easily identifiable to a specific product. In other words, some indirect costs are more readily associated with Product A versus Product B. The objective of any costing system is to assign cost in the most precise manner possible so that pricing and profit decisions are accurate. The most difficult costs to assign are management, general and administrative, and other "non-productive" costs. The answer as to whether direct labor is the best basis for cost allocation is most dependent on the proportion of direct labor costs to other direct costs and whether the indirect costs are driven by the volume (hours) or value ($) of direct labor. A capital intensive manufacturing process utilizing expensive machinery may be best served by allocating indirect costs based on machine time versus human time. This is just an example. To say is there a best way is probably not the right question. There are many ways and are all dependent on the specifics of the business.
How do traditional cost assignment systems assign direct costs?
Traditional cost assignment systems typically would assign directly to the cost objects the costs of those resource consumptions that can be economically traced directly to units of output requiring the resources.
What is the mean of assignment?
of Assign
What is the root word for assignment?
The root word for assignment is assign.
What is the verb for assigment?
The verb of assignment is assign. As in "to assign something or someone to something or someone".
Is assignment an adverb?
No. It is not an adverb. Assignment is a noun form of the verb assign and there is no direct adverb form.
What is the root word of assignment?
The word assign is a verb (assign, assigns, assigning, assigned). The noun forms for the verb to assign are assigner, one who assigns, assignability, and the gerund, assigning. Another noun form is assignment.
What are the different position assign in a housekeeping department?
1- Routine assignment. 2- days offs cover assignment. 3- leaves cover assignment. 4- Project work assignment.
Complex assignment in java?
An Assignment operator in Java is the operator that is used to assign a variable a value. if you declare int x = 10; then the value 10 is assigned to the variable x. here the "=" symbol is the assignment operator.
What is the difference between homework and assignment?
homework is a tasks that should be done at home while assignment assign anywhere as long as you can accomplished it before due date.
What is the suffix of assignment?
the ending of the word assignment is suffix
What is the verb for assignment?
The verb of assignment is assign.Others are assigns, assigning and assigned, depending on the tense.Some example sentences are:"We will assign a new teacher"."She assigns the employee to the top floor"."They will be assigning us to a new squadron"."The new teacher was assigned to the worst class in the school".
Does a homeowner have to agree to a bank selling their mortgage to another bank?
No. The bank owns the mortgage and can assign its interest in and rights under the mortgage to another entity. However, the assignee cannot change the terms of the mortgage and the assignment must be recorded in the land records so the holder by assignment can be identified.No. The bank owns the mortgage and can assign its interest in and rights under the mortgage to another entity. However, the assignee cannot change the terms of the mortgage and the assignment must be recorded in the land records so the holder by assignment can be identified.No. The bank owns the mortgage and can assign its interest in and rights under the mortgage to another entity. However, the assignee cannot change the terms of the mortgage and the assignment must be recorded in the land records so the holder by assignment can be identified.No. The bank owns the mortgage and can assign its interest in and rights under the mortgage to another entity. However, the assignee cannot change the terms of the mortgage and the assignment must be recorded in the land records so the holder by assignment can be identified.
