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Disadvantages of activity based costing
1) It is essentially not the panacea for all ills.
2) It absorbs a lot of resources.
3) Too much emphasis on customer viability can leas to problem such as cheaper product and therefore potentially lower customs segmentation.
4) It may lead to weaker customs segmentation.
5) It takes no account of opportunity cost.
Markov Chains: Markov Chains are named after the Russian statistician A.A Markov who developed probabilistic models that are often applicable to decision making problems in bu
Change of Technology: Changes in technology commonly leads to improvements in the efficient processing of raw material, reduce in wastages, more speedy production and higher produ
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Return on Investment and Residual Income This is a traditional approach to performance measurement given by: ROI = Income Invested Capital (m
a annual sales are 585000 unit. the purchase price per unit is $2. the carrying cost is 26% of purchase price of goods safty stock is 100000 units on hand two weeks are required fo
Compute the ‘fair' value of the two nearest to expiration futures contracts on the Hang - Seng Index (HSI) using HSI as the underlying asset Answer the following questions: a
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It is a commitment by a bank to lend a specific amount of funds on demand identifies the maximum amount of unsecured credit the bank will allow the customer to borrow at any time.
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Participative Budgets In this approach to budgeting, budgets are developed by lower level managers who then submit them to their superiors. The budgets depend on the lower level
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