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Cost drivers are the actual activities due to which costs incurres like machine setup cost. As many time there is machine setup as many times there is machine setup cost to be incurred.
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Budgeting is the one of the main tool to control the cost?
4. "Budgeting is the one of the main tool to control the cost" - Give your view.
What are some examples of cost drivers in accounting?
Cost drivers are activities that increase the cost of a product. Direct labor and packaging are both cost drivers for products.
Differences between fixed variable budgets?
Variable budgeting is one based on different levels of activity. It is an extremely useful tool for comparing the actual cost incurred to the cost allowable for the activity level achieved. It is dynamic in nature rather than static. By using the cost-volume formula (or flexible budget formula), a series of budgets can be developed easily for various levels of activity. A static (FIXED) budget is geared for only one level of activity and has problems in cost control. Flexible budgeting distinguishes between fixed and variable costs, thus allowing for a budget that can be automatically adjusted (via changes in variable cost totals) to the particular level of activity actually attained. Thus variances between actual costs and budgeted costs are adjusted for volume ups and downs before differences due to price and quantity factors are computed. The primary use of the flexible budget is for accurate measure of performance by comparing actual costs for a given output with the budgeted costs for the same level of output.
Significance of cost of capital in financial decision making?
capital budgeting decisions capital structure decisions
What does the process of budgeting encompass?
what does the process of budgeting encompass? what does the process of budgeting encompass?
How would you describe an activity-based budget?
Activity-based budgeting is a technique that focuses on costs of activities or cost drivers necessary for production and sales. Such an approach facilitates continuous improvement.
How would you describe an activity based budget?
Activity-based budgeting is a technique that focuses on costs of activities or cost drivers necessary for production and sales. Such an approach facilitates continuous improvement.
What are the cost drivers which are used in apportioning overheads cost under activity based budgeting?
Cost drivers are activities due to which cost incurred for expample as many time as machines are setup for production as many time machine setup cost will be incurred so matchine setup is cost driver.
What is the difference between activity based budgeting and traditional budgeting?
The activity based budgeting will give a percentage of the budget to the sections that are the most used. Traditional just splits it all up evenly.
How an activity-based capital budget differs from a conventional capital budget and describe the impact of activity based costing on capital-budgeting decisions?
Activity based budgeting is a technique that focuses on costs of activities or cost drivers necessary for production and sales. Such an approach facilitates continuous improvement.Conventional capital budgetingConventional: Based on or in accordance with general agreementCapital budgeting is the planning process used to determine whether an organization's long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing. It is budget for major capital, or investment, expenditures.
Cost allocation bases in activity-based costing should be a. cost drivers b. value-added activities c. activity centers d. processes?
C
What is a cost budget?
Budgeted labour cost is an expected or standard labour cost to perform any activity. In budgeting process budgeted cost for doing every activity is calculated before so that it would be helpful in control or evaluation stage to check whether expenses are according to budget or not and if not then what's the reasons.
What is a budget labor cost?
Budgeted labour cost is an expected or standard labour cost to perform any activity. In budgeting process budgeted cost for doing every activity is calculated before so that it would be helpful in control or evaluation stage to check whether expenses are according to budget or not and if not then what's the reasons.
What are the two stages of allocation in activity-based costing?
Identifying the activities and identification of cost drivers
What are the two stages of allocation in activity based costing?
Identifying the activities and identification of cost drivers
What does cost allocation mean?
a factor that determines the cost of an activity. Cost drivers are analyzed as part of activity based costing and can be used in continuous improvement programs. They are usually assessed together as multiple drivers rather than singly. There are two main types of cost driver: the first is a resource driver, which refers to the contribution of the quantity of resources used to the cost of an activity; the second is an activity driver, which refers to the costs incurred by the activities required to complete a particular task or project.
Budgeting is the one of the main tool to control the cost?
4. "Budgeting is the one of the main tool to control the cost" - Give your view.
