0
What else can I help you with?
Departmental overhead absorption rate?
The benefit of determining overhead absorption rates, according to departments is that it is usually hard to pin certain overhead costs to specific products. It is better for each department to relate to a certain overhead than a specific product.
What are the advantages of departmental overhead costs?
Incorporating departmental overhead costs in your prices helps you cover the costs of production. Unfortunately, it may make your price more than your competitors.
What are the advantages of using predetermined overhead rates?
The benefits of using predetermined overhead rates is that budgeting and allocation of cash flows become easier. It also helps the firm to conserve resources to stay within a budget.
What do you mean by departmental explain departmental briefly?
A department is a subdivision of an organisation - for instance the Geology department is the subdivision that studies/teaches Geology in a University. Therefore 'departmental' means belonging to a department - as in the departmental staff.
Where is a good place to find the best savings interest rates?
Typically, the best rates available for savings and checking accounts are those that online banks give to their customers. Since they don't have overhead costs like brick and mortar banks, there rates tend to be better.
Departmental overhead absorption rate?
The benefit of determining overhead absorption rates, according to departments is that it is usually hard to pin certain overhead costs to specific products. It is better for each department to relate to a certain overhead than a specific product.
How are departmental rates calculated?
Departmental rates are calculated by dividing the weighted wage rate for the department by the number of employees.
What are the advantages of departmental overhead costs?
Incorporating departmental overhead costs in your prices helps you cover the costs of production. Unfortunately, it may make your price more than your competitors.
Would you expect substantially different amounts of overhead costs to be assigned to some jobs if the company used a plantwide overhead rate based in direct labor hours rather than using departmental?
Yes, using a plantwide overhead rate based on direct labor hours could result in significantly different overhead cost allocations compared to a departmental approach. Plantwide rates average costs across the entire facility, which may not accurately reflect the overhead consumption of specific departments with varying processes and resource needs. This could lead to over- or under-costing of jobs in certain departments, affecting pricing and profitability decisions. In contrast, departmental rates provide a more tailored allocation that can better match actual resource usage.
What is a blanket overhead absorption rate How will you differentiate between blanket overhead rate and other overhead absorption rate?
In Blanket Overhead Absorption Rate applied is the same however it may differ if a company follow Departmental method Or frther break - up method
What is a departmental overhead absorption rate?
A departmental overhead absorption rate is a cost accounting metric used to allocate overhead costs to specific departments or production units within an organization. It is calculated by dividing the total overhead costs for a department by an appropriate allocation base, such as direct labor hours, machine hours, or production volume. This rate helps in accurately assigning costs to products or services, facilitating better pricing and profitability analysis. By using this method, companies can ensure that overhead costs are systematically absorbed into product costs, leading to more informed financial decision-making.
What is the difference between a departmental overhead absorption rate to a blanket wide overhead absorption rate?
basically yh fam, mans got this question aswell, so good try! call me sometime! villa 4 champions league!
What are the advantages of using predetermined overhead rates?
The benefits of using predetermined overhead rates is that budgeting and allocation of cash flows become easier. It also helps the firm to conserve resources to stay within a budget.
It is better to use multiple overhead rates compared to single rate in overhead absorption Discuss statement?
hope u all can help me about this question
In a departmental organization what is a gangplank?
In a departmental organization what is a gangplank?
Why are actual overhead is rate seldom used in practice?
Actual overhead rates are seldom used in practice because they can fluctuate significantly over time, making budgeting and cost control difficult. Companies often prefer to use predetermined overhead rates based on estimated costs to provide more stability and predictability in pricing and financial planning. Additionally, using estimated rates allows for timely decision-making and smoother operations, as actual overhead costs may not be known until the end of a period. This approach helps to avoid the inconsistencies that can arise from the variability in actual overhead expenses.
How is predetermined overhead rates useful in costing?
It allows you to forecast future costs needed to do business.
