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Q: What are the danger in allocating common fixed cost among product lines or other segments of an organization?
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What is the impact of allocating common costs for internal decision making?

When companies choose to allocate costs they have to consider how those costs will impact the final cost of their products and services. If they allocate them incorrectly, then the final product may be over or under priced, which will negatively impact internal decision making.


What is the most common form of business organization?

Sole Proprietorship.


How can i make a ledger accounts balance off all the accounts and bring forward the balances?

Make sure all transactions are completed - including allocating any deposits. The common cause of failure to balance is having unallocated cash.


What is difference between branch accounts and departmental accounts?

Followings are the main differences between branch and department:1. Branches are separated from the main organization. Departments are attached with the main organization under a single roof.2. Branches are the outcome of tough competition and expansion of business. Departments are the result of fast human life.3. Branches are geographically separated. Departments are not separated rather existed under a same roof.4. Branches are of different types like dependent, independent and foreign. There is no such classification in department because all are common under the same roof.5. Allocation of branch common expenses does not arise. Allocation of departmental common expenses is a tough job.6. To find out the net result of the organization, the reconciliation of different branch account is a main job.In departmental accounting, no reconciliation is necessary because there is a central account division


What is the difference between departmental accounting and branch accounting?

Followings are the main differences between branch and department:1. Branches are separated from the main organization. Departments are attached with the main organization under a single roof.2. Branches are the outcome of tough competition and expansion of business. Departments are the result of fast human life.3. Branches are geographically separated. Departments are not separated rather existed under a same roof.4. Branches are of different types like dependent, independent and foreign. There is no such classification in department because all are common under the same roof.5. Allocation of branch common expenses does not arise. Allocation of departmental common expenses is a tough job.6. To find out the net result of the organization, the reconciliation of different branch account is a main job. In departmental accounting, no reconciliation is necessary because there is a central account division.

Related questions

Is supplier a common noun?

Yes, the noun 'supplier' is a common noun, a general word for a company, organization, or country that provides or sells a product or a service.


What does a ruler and a keyboard have in common?

it is made of segments


What is a plane figure formed by coplanar segments such that each segment intersects exactly two other segments and no two segments with a common endpoint are collinear?

Polygon


What is the common end point of two line segments called?

This is the vertex of the angle between the two line segments


Can congruent line segments have a common endpoint?

yes...


What is the impact of allocating common costs for internal decision making?

When companies choose to allocate costs they have to consider how those costs will impact the final cost of their products and services. If they allocate them incorrectly, then the final product may be over or under priced, which will negatively impact internal decision making.


What is a figure formed by two rays or line segments that have a common vertex?

It is an angle.


What is the most common animal on earth with 3 body segments that is an invertebrate?

arthropods


The figure formed by two rays or line segments that have a common vertex?

An angle.


What is the common endpoint of two segments or rays that form the corner of an angle?

what is a ray


What is the least type of common business organization in the US?

The least common form of business organization in the US is the partnership.


What type of business organization is the least common in the US?

The least common form of business organization in the US is the partnership.