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Hi Activity Based Costing could be seen as the 'Cause-and-Effect' realtionship in the costs. If we extend this logic then we can segregate all the costs in four sections. a) Product Costs b) Customer Costs c) Business Sustaining Costs d) Cost available to use In this sense the Activity Basedd Costing gives an accurate costing picture.
What else can I help you with?
Why do Managers prefer Variable Costing?
Managers prefer variable costing because it provides a clearer picture of the actual cost of production by only including variable costs in product costs, thus aiding in decision-making. This method allows for better analysis of cost behavior and profitability, particularly in scenarios of fluctuating sales volumes. Additionally, variable costing aligns with management's focus on controlling costs and optimizing resource allocation, making it easier to assess operational efficiency. It also facilitates more accurate forecasting and budgeting.
How does an actual costing system different from a normal costing system?
Well, imagine an actual costing system as painting a landscape exactly as it is in front of you, capturing every detail and color with precision. On the other hand, a normal costing system is like painting a landscape from memory, using average costs and estimates to create a general picture. Both methods have their own beauty and usefulness, depending on the situation. Just remember, there's no mistakes in art, only happy little accidents.
What are the disadvantages of activity based costing?
· More time consuming to collect data · Cost of buying, implementing and maintaining activity based system · Makes waste visible which some executives and managers don't want their boss to see * It may be difficult to set up and establish, particularly if an organisation is using more traditional accounting methodologies. (barriers to change) * Can be time consuming if all activities are to be costed * May provide too much detail - obscuring the bigger picture.
What are the advantages of using relevant costing?
Relevant costing helps businesses make informed decisions by focusing on costs that will directly impact future cash flows, thereby ignoring sunk costs and fixed overheads that won't change. This approach enhances decision-making for pricing, outsourcing, and product discontinuation by providing a clearer picture of potential profitability. Additionally, it aids in resource allocation by highlighting the costs associated with different alternatives, ultimately leading to more efficient operations and improved financial outcomes.
What is back flash costing?
Back flash costing is a cost accounting method that allocates costs to products after they have been manufactured, rather than at various stages during the production process. This approach typically involves summarizing costs at the end of a production run and assigning those costs to the finished goods based on actual output. It can simplify record-keeping and provide a clearer picture of product profitability, but may obscure detailed insights into individual production stages. This method is often used in environments with high-volume production and standardized products.
Why do Managers prefer Variable Costing?
Managers prefer variable costing because it provides a clearer picture of the actual cost of production by only including variable costs in product costs, thus aiding in decision-making. This method allows for better analysis of cost behavior and profitability, particularly in scenarios of fluctuating sales volumes. Additionally, variable costing aligns with management's focus on controlling costs and optimizing resource allocation, making it easier to assess operational efficiency. It also facilitates more accurate forecasting and budgeting.
How does an actual costing system different from a normal costing system?
Well, imagine an actual costing system as painting a landscape exactly as it is in front of you, capturing every detail and color with precision. On the other hand, a normal costing system is like painting a landscape from memory, using average costs and estimates to create a general picture. Both methods have their own beauty and usefulness, depending on the situation. Just remember, there's no mistakes in art, only happy little accidents.
What are the benefits of activity-based costing?
There are several limitations to ABC.Firstly it is expense to implement and maintain, both in time and money.It still faces issue allocating some overheads to activities, for example supervisor salaries.Management and employees can be resistant to the data it provides as it can make their performance look poor. They may even provide poor quality source data if they feel threatened.
When did Kodak announce they would stop participating in the digital picture frame market?
Kodak announced they would stop participating in the digital picture frame market in 2011. That is because other technology was surpassing them and it would costing too much.
Short-term decisions using variable costing?
Short-term decisions using variable costing focus on analyzing costs that vary directly with production levels, such as direct materials, direct labor, and variable manufacturing overhead. This approach helps managers assess the impact of production changes on profitability without the influence of fixed costs, which are treated as period costs. By concentrating on variable costs, businesses can make informed decisions about pricing, product mix, and capacity utilization, especially in scenarios like special orders or temporary market changes. Ultimately, variable costing provides a clearer picture of the contribution margin, aiding in effective short-term financial planning.
How do you send phone backgrounds to your phone?
Alot of magizines have those things in them that your sopposed to text a # to your phone but they end up costing money on your bill i suggest you go to the popular myxer.com and its free! my phone has camera. i often take picture with my phone and store the picture. then if i would like, i can set these pictures to the phone background.
What are the disadvantages of activity based costing?
· More time consuming to collect data · Cost of buying, implementing and maintaining activity based system · Makes waste visible which some executives and managers don't want their boss to see * It may be difficult to set up and establish, particularly if an organisation is using more traditional accounting methodologies. (barriers to change) * Can be time consuming if all activities are to be costed * May provide too much detail - obscuring the bigger picture.
What are the advantages of using relevant costing?
Relevant costing helps businesses make informed decisions by focusing on costs that will directly impact future cash flows, thereby ignoring sunk costs and fixed overheads that won't change. This approach enhances decision-making for pricing, outsourcing, and product discontinuation by providing a clearer picture of potential profitability. Additionally, it aids in resource allocation by highlighting the costs associated with different alternatives, ultimately leading to more efficient operations and improved financial outcomes.
What is back flash costing?
Back flash costing is a cost accounting method that allocates costs to products after they have been manufactured, rather than at various stages during the production process. This approach typically involves summarizing costs at the end of a production run and assigning those costs to the finished goods based on actual output. It can simplify record-keeping and provide a clearer picture of product profitability, but may obscure detailed insights into individual production stages. This method is often used in environments with high-volume production and standardized products.
What is pre contract cost planning?
It is a pre-costing method of a project and which will be able to tell the cost of construction after completion the design and also before its execution. Pre-estimation of a design proposal will give clear picture about the cost of it's to the employer as well as to the design team to make decisions regarding the project to ensure value for money.
What's the difference between an inkjet printer and a laser printer?
Inkjet printers are much more simple and require less money to operate as well as the cartriges costing less money, as oposed to the laserjet which is more complex and expensive. The only argument is that the laserjet produces a much better picture and can also print on glossy papers, the inkjet can not.
What are the best cricket wireless plans?
The most value is to be had from the Smartphone wireless plan costing $60.00/month. It offers nationwide calling, unlimited text and picture messaging in both the United States and also worldwide. It offers a 2.5 GB allowance on data and also includes, data backup and tethering options. It is a bargain at 60.00/month.
