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The machine hour rate is advantageous because it provides a clear and straightforward method for allocating manufacturing overhead costs based on actual machine usage, allowing for better cost control and pricing strategies. However, its disadvantages include potential inaccuracies if machines are not consistently used or if overhead costs fluctuate significantly, leading to distorted cost assessments. Additionally, it may overlook other important factors like labor costs and operational inefficiencies. Thus, while useful, it should be applied alongside other costing methods for a comprehensive view.
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What are the disadvantages of machine hour rate?
hour rate
What is the Machine hour rate of 200 ton injection molding machine?
Machine hour rate of 200 ton machine is 200*1.125= ?
Briefly explain Advantages and disadvantages a flexible exchange-rate system?
define exchange and whts its advantages and disadvantages
Machine hour rate?
A machine hour rate is the cost of one machine working for one hour. This is used in calculating overhead costs to work in process as opposed to using labor hours.
How do you calculate hobbing machine hour rate used in gear manufacturing?
how to calculate machine hourly rate
What are the disadvantages in machine hour rate?
The machine hour rate can have several disadvantages, including the potential for inaccurate cost allocation if machine utilization varies significantly. It may not account for other overhead costs, such as labor or maintenance, leading to misleading profit margins. Additionally, businesses with varying production levels may find it challenging to set a consistent rate, complicating budgeting and pricing strategies. Lastly, it can incentivize overuse of machines, potentially leading to increased wear and tear or reduced quality if not monitored properly.
What were the disadvantages and advantages of being an apprentice?
The advantages are that you can learn new skills in a particular trade and you gain a qualification in that trade. One of the disadvantages is that your pay rate might not be that good while you are an apprentice
What were the advantages and disadvantages of being and apprentice?
The advantages are that you can learn new skills in a particular trade and you gain a qualification in that trade. One of the disadvantages is that your pay rate might not be that good while you are an apprentice
What are the advantages and disadvantages of bill of exchange?
bill exchange is at an advantage of getting items by exchanging at a fair rate
Advantages and disadvantages of preference share?
Some of the advantages of the preference share is the absence of the fixed regular income and less capital loses. Some of the disadvantages includes the dilution of claim over assets and the high rate of dividends.
Advantages and disadvantages of Amplitude Shift Keying?
Information transmission rate is higher. carrier power remain constant
What are advantages and disadvantages of zigbee wireless technology?
Advantages 1. low cost 2.low power consumption 3.highly reliable 4.secured Disadvantages 1.low transmission rate 2.smaller distance
