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Question - The idea of the necessity of cost allocation has been argued both pro and con very convincingly. Some experts assert that no fixed costs should be allocated to departments or products, suggesting that this kind of cost averaging prevents companies from making good decisions by obscuring the true cost of providing "the next" unit of goods to their customers. They claim that a more relevant and appropriate system would assign only variable costs. This argument supports the economic idea of marginal cost.
Others argue just as convincingly that without assigning the total cost of goods and services to units produced, a true cost of providing the good or service cannot be determined and companies could not operate.
In other words, if you are driving in your own car to another city, how much will it really cost you to make that drive? Should you include the cost of the car, part of the cost of the car, none of it? What if a friend asked if he could ride with you? What is the cost of the second passenger?
If an asset has a depreciable basis of $150,000 and a ten-year life, what will be the amount of amortization for each of the ten years
How many additional units must be sold to achieve breakeven after energy cost increase in comparison to the breakeven calculation before energy cost increase
The following is Allison Corporation's contribution format income statement for last month: What is the company's break-even sales in dollars
Deb buys a house for $175,000. She makes a $30,000 down payment and mortgages the rest at 3.8% for 30 years.
question-on april 1 2007 sas corp. purchased and placed in service a plant asset. the following information is
Even though we may contract with a company or an organization to provide us with goods and services, we still most typically deal with an individual human being representing that organization. In the event of a problem with our purchase.
Division X makes a part that it sells to customers outside of the company. What should be the lowest acceptable transfer price from perspective of Division X
the adobe brick company makes fired clay bricks. adobe anticipates production to be 150000 bricks with fixed overhead
What are the loans tax consequences (both income and deductions) to Cooper Corporation and Sandy
Fabiano Brothers Co. is considering an investment that requires immediate payment of $550,000 and provides expected cash inflows of $100,000 annually for eight.
Prepare the journal entries to record the treasury stock transactions in 2010, assuming Clemson uses the cost method.
Determine the inventory as of December 31, 2017, by the LCNRV method, applying this method to each item
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