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Why do overheads need to be absorbed upon pre-determined bases?
Wiki User
∙ 10y ago
Pre-determined overhead rate is required to allocate overhead to units of products to calculate the cost price per unit because it is not practical to wait for the completion of the production and find out the actual overheads and then allocated the cost price to unit to start selling products that's why it is always pre-determined based on standard costs.
Wiki User
∙ 10y ago
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What is break even sales analysis?
Break even sales anaylsis means that how much minimum sales need to be achieved to cover all expenses and how much sales need to be acheive to earn predetermined profit.
How do you compute the cost of products transferred from production to finished goods?
One would need to add together the following costs; materials, labouring and overheads. The sum of these would then be subtracted from the start balance. The answer would then indicate the total cost of the goods.
Why do you need applied overhead rate?
We need applied overhead rate to know about the overhead variance. Otherwise how will we know how much overhead expenses should have been incurred and how much is actually incurred? Predetermined rate multiplied by the actual unit level activity is applied overhead
You work in sparsh and you need your payslip?
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Why do overheads need to be absorbed upon predetermined bases. Consider whether these bases for absorption are appropriate in the light of changing technology?
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Do minerals need to be taken with a nutrient to be absorbed?
No. They get absorbed in the system when they're ingested.
Do water need to be digested?
No. It is absorbed.
Where will the next Dalai Lama the 15th come from?
This is not predetermined before his death. If it were there would be no need to search him out.
Does glucose need to be digested before it is absorbed?
Glucose is a monosaccharide, so it does not need to be broken down any further. It can be absorbed without any changes.
Do lipids need to be digested before they can be absorbed?
Yes- to be more specific they are "emulsified" by bile, before it is absorbed.
Why doesn't water need to be digested before being absorbed?
Water is water. It is already in the right form to be absorbed, no breakup needed.
Where is water absorbed in plants?
water is absorbed through the roots of the plants. they need it to process theyre own food
Alcohol does not need to be digested in order to be absorbed by the body?
That's correct.
How do unhatched chicks eat?
The yolk is absorbed into their body and provides the nutrition they need.
Why pre-determined overhead absorption rates are prefered to overhead absorption rates calculated from factual information after the end of a financial period?
Cost of Production: The most important use is Calculation of production cost. Overhead is a cost and thererfore it is one of the determining factors of overheads. For calculation of cost of production (actual) which will be reflected into the Books of account for the year end we will take into account the factual costs but as far as pricing the produced goods and giving quotes to customer we will need to bank upon the predetermined overhead absorption rates.Guidelines for the Production Department: The production department is one of the major cost centres for any manufacturing company and overheads is a major expense in that department. Proper management of expenses is very important for any organisation to succeed. As overhead is a highly variable cost it is very important to lay a guideline for the production department as to what the management expects them to expend on overheads. It serves as a benchmark and then it lays in the hands of the production employees as to how carefully they manage their expenses on overheads as to remain in lines with management expectations. A certain degree of variance due to uncontrollable factors like rise in electricity charges, rents, rates etc is always tolerated but other expenses which can be controlled need to be properly in line with budgetary allowance. A wider difference between predetermined costs and actual expenditure will lead to differences in the profitability of the company.Selling Price Calculation: The prime reason for it being that the actual price of supplying the goods to any customer is determined when an order is placed with us, at that point of time the goods have not been produced hence factual rates are not available for us. The selling price of any goods is equal to Cost plus profit. We can exactly calculate how much profit we anticipate but the cost for any goods not produced cannot be ascertained exactly hence the predetermined rates are used. No customer will ever wait for us till the year end so as to provide him with actual supply price for goods supplied to him at an earlier stage.
How many windows does scientific bases have in antarctica?
The buildings on the bases have as many windows as they need. There is no standard.
