0
Why did so many people criticise the American government's security sevrices after the attacks?
Wiki User
∙ 14y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
How were goods and services trade by barter?
Barter is a currencyless system, which means goods and srevices were paid by other goods or sevrices. For example traiding 4 cigarettes for a can of beer would be a barter exchange.
When should a kid get a phone?
According to PewResearch Center, the average age is between 12 and 13, but when to get your child a cell phone is a personal decision, and can vary from kid to kid based on maturity and need. Surveys have shown that the average age kids get cell phones is 10 years old. It has also been reported that 25% of kids under the age of six have phones.
Discuss why overhead costing methods using plant-wide overhead rate or departmental overhead rates are no longer adequate for costing products and sevrices in other companies?
With advancing technology and intense competitions, companies will strive to provide wider varieties of goods and services. Companies will thus produce both simple and complex products. Complex products tend to consume more non-unit level activities. Examples of non-unit level activities are setups, inspections and equipment maintenance, etc. When there is a large proportion of non-unit level activities, plant-wide overhead rate and departmental overhead rates will result in inaccurate costing. This is because the two traditional methods use unit-level cost driver that cannot capture non-unit level activities with precision. An example of unit-level cost driver is machine hours, since every product requires machine time. Usually complex products are produced in lower volume than simple products. Since the traditional costing methods use a unit-level cost driver, simple products will have higher overhead costs than the complex products. The products will thus be priced higher. The complex products, which use more non-unit level activities are priced lower. Logically, complex products are more expensive than simpler products because of their more complicated production processes. These production processes involve more non unit-level activities. The inaccurate costing leads to inaccurate prices of products, i.e. overpricing the simpler products and underpricing the complex products. The overpriced products might lead the firm to shut down its production unit due to low demand. Similarly, the underpriced complex products will have unexceptionally higher demand. This will undermine the true profits made by the firm. Because although higher demands lead to higher sales, the revenue that the firm collects are, in fact, less than what it supposed to get, if proper costing method is used, e.g. ABC Costing. Companies will incur losses instead because of the high expenses incurred that are not captured in producing the complex products. Hence, the plant-wide rate and departmental rates are no longer adequate to use for costing products.Activity based costing refers to the methodology that identifies activities in a given organization and assigning each activity a given cost.
