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What is the effect of variable costing on net income?
It inhibits projected earing figures and projections.
How is marginal and differential costing used as a tool for decision making?
The Marginal or differential accounting has the basic rule that this accounting method donot consider decisions made previously and only considers the decisions effecting the future so only that information is used for future decision making which is going to effect or change the future decisions and don't considers the decisions made before. So past information is not relevent for future decision making and this is also the main rule which is used by this accounting method if we use other accounting methods like absorption costing for decision making in the end there is a chance to make wrong decisions.
Does Activity Based Costing produce an accurate costing picture?
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.
State the arguments for using marginal costing approach in routine accounting?
- The Marginal costing technique is appropriate for decision making as it highlights those costs (and revenues) which will change as a result of the decision under review being put into effect. - As fixed costs are mostly overheads, and, under marginal costing these are all treated as period costs and charged into the income statement therefore marginal costing avoids arbitrary allocation of overheads to units of output. - Reporting profit on a marginal costing basis will be more closely relates to changes in sales volume and are less affected by changes in inventory levels. - An understanding of the behavior of costs and the implications of contribution is vital for accountants and managers as the use of marginal costing for decision making is universal.
What the effect of standard costing on employee motivation?
Standard costing can have a mixed effect on employee motivation. On one hand, it provides clear performance benchmarks, helping employees understand expectations and encouraging them to meet or exceed those standards. However, if the standards are perceived as unrealistic or excessively rigid, it can lead to frustration and decreased morale. Additionally, excessive focus on cost control may discourage creativity and collaboration if employees feel pressured to prioritize efficiency over quality.
What has OPEC done to limit the effect of nonmember production on its pricing decision?
what has OPEC done to limit the effect of non member production on its pricing decisions?
What influence does the law have on pricing?
Pilferage and shoplifting have an immediate effect on weekly pricing indices.
What is the effect of variable costing on net income?
It inhibits projected earing figures and projections.
How is marginal and differential costing used as a tool for decision making?
The Marginal or differential accounting has the basic rule that this accounting method donot consider decisions made previously and only considers the decisions effecting the future so only that information is used for future decision making which is going to effect or change the future decisions and don't considers the decisions made before. So past information is not relevent for future decision making and this is also the main rule which is used by this accounting method if we use other accounting methods like absorption costing for decision making in the end there is a chance to make wrong decisions.
Does Activity Based Costing produce an accurate costing picture?
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 is spillover pricing effect?
The spillover pricing effect refers to the phenomenon where the pricing strategy of one product influences the perceived value and pricing of related products within the same category or brand. This effect can occur when consumers compare prices among similar products, leading to adjustments in demand and pricing strategies. For example, a price reduction on a premium product may enhance the attractiveness of lower-priced alternatives, impacting overall sales dynamics. Companies often leverage this effect to optimize product positioning and maximize revenue across their product lines.
An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the ending inventory valuation is?
FIFO
The factor that determines what effect human being have on the environment is the?
decisions made by an individual
What effect do the narrators decisions have on the people of Borneo?
They are worse off than they were before.
What effect do the narrator's decisions have on the people of Borneo?
They are worse off than they were before.
What is the relationship between decisions and consequences?
The difference between decisions and consequences is that decisions is when you make up your mind. And a consequence is the effect, result or outcome of something occuring earlier. It can be good or bad !
What are the role of cost accountant in profit stabilization?
Managing and maintaining a proper costing strategy that will eliminate/ reduce additional cost/overheads that will have a direct effect on the productions.
