Total Cost Data are actual data-approximations

Assignment Help Financial Accounting

Reference no: EM133971695

Question

The four A's of Total Cost Data are actual data, approximations, assumptions, and absent data. The four A's of Total Cost Data is a useful tool for organizations to analyze their total cost of conducting business. Actual cost is the cost utilized for the analysis of the actual cost of all expenses of an organization. Actual cost is important because it provides you specific details about expenses and shows a organization where majority of the expenses are. Approximations is a value or quantity that are not exactly correct. Approximations are important for an organization because they assist with being able to estimate cost. Assumptions are in my opinion the least reliable because assumptions are not validated, and everyone has their own assumptions. Absent data is data that is not provided for total cost data. The problem is that the cost to collect the data outweighs the value of the data and at other times the number of possible cost elements that could be part of the model becomes overwhelming. The two I would definitely recommend any organization to utilize is actual data and approximations. I feel they would provide the best benefits.

Reference no: EM133971695

Questions Cloud

Define masculine traits : List 4 things that define Masculine traits and 4 things that define feminine traits. Its ok to use stereotypes here because we are listing what is expected.

What are the tax implications to his spouse and children : What are the tax implications to his spouse and children if they sell the property immediately after they receive ownership?

What was the firm net cash flow from operating activities : If Kelvin uses the indirect method and had net income of $88,700 for 2022, what was the firm's net cash flow from operating activities?

Net cash provided by operating activities : Propritary fund- please make a reconciliation of operating income to net cash provided by operating activities.

Total Cost Data are actual data-approximations : The four A's of Total Cost Data are actual data, approximations, assumptions, and absent data.

What happens to losses that are passive : Does it apply to all businesses? When are the losses available to offset income? What happens to losses that are passive? When can they be used?

Cash and standard interest coverage ratio : The primary difference between the cash interest coverage ratio and standard interest coverage ratio

Taxation of ordinary income and capital gains : What is the biggest difference between the taxation of ordinary income and capital gains? What are the tax benefits related to wealth transfers?

How is ts different from other psychiatric disorders : How is TS different from other psychiatric disorders? Why is TS more a disorder of the on-looker than of the patient?

User Account

All Pages