Reasons for cost allocation, Cost Accounting

Reasons for Cost Allocation

1. To provide comparison along with externally provided services:  It helps in assessing where to continue the contact or service outsiders.

2. To facilitate ideas on the efficiency of service departments: It assists to determine where a service department is operating efficiently and its size is optimal.

3. To discourage unnecessary service via some managers like they identify they'll be charged.

4. To facilitate opportunity for cost price-quality tradeoffs: Cost allocation assists to remove friction among departments. Since a user department such demands higher quality recognizes that it will contain to bear higher costs.

Posted Date: 2/5/2013 7:49:21 AM | Location : United States







Related Discussions:- Reasons for cost allocation, Assignment Help, Ask Question on Reasons for cost allocation, Get Answer, Expert's Help, Reasons for cost allocation Discussions

Write discussion on Reasons for cost allocation
Your posts are moderated
Related Questions
using the high low method how do i calculate the costs that are expected when the output expected is out of the range given for example cost prdctn volume 110000

hml analysis , sde analysis,sos analysis, golf analysis , xyz analysis

Process Losses Most manufacturing processes result in several portion of the raw materials utilized not being transformed into a reliable half losses.  These losses may take t


Ask What is the major value of the weighted cost of capital calculation for the firm? question #Minimum 100 words accepted#

weekly working hour 48 , hourly wage rate 15$ , price rate per unit 6$ , normal time taken per piece 36 minuets , normal output per week 220 pieces , actual output per week 275 pie

Prepare a spreadsheet of an overhead budget for the company in Problem 5 on page 216 of the textbook. You have been running a construction company out of your home with your spouse

You are the CFO of a Hospital. Suppose that your projected average daily reimbursement is $100, 000 and your average collection day is 40 days. What is your hospital's annual cost

A company is considering the following alternatives: Alternative 1 Alternative 2 Revenues $240,000 240,000 Variable costs 120,000 140,000 Fixed costs 70,000 70,000 Which of the fol

what is regression analysis and its applicability to the course of cost accounting