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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?
audits. between quarterly audits a company checks its accounting procedures to detect problems before they become
High Air reported a $15,000 loss for its X9 calendar year. Calculate how much loss Gerald can deduct
The chart below describes the § 1231 assets sold by the Tan Company (a sole proprietorship) this year. Compute the gain or loss from each asset disposition and determine the net § 1231 gain treated as long-term capital gain for the year. Assume th..
Calculate cost of goods sold and ending inventory under the FIFO method, using the periodic inventory system.
The managing director of CUP is interested in developing more sophisticated planning systems, Prepare a report outlining the importance of planning systems
What is the translation adjustment to be recognized in the current year?
at december 31 2014 indigo girls company has outstanding noncancelable purchase commitments for 43920 gallons at 4.35
When should costs be expensed and when should costs be capitalized?
How long does it take to reach steady state? Use simulation, with the Multi server Simulation.xlsm file, to experiment with the effect of warm-up time and run time on the key outputs.
Summarize authoritative guidance for asset impairments under IFRS. Give two example of events that could cause an asset to be tested for impairment, and recommend best method to determine fair value of an impaired asset.
an accounting procedure that 1 estimates and reports bad debts expense from credit sales during the period of the sales
As you know, we have recently experienced stagnant growth. In preparation for my upcoming meeting with the Board of Directors, I am asking you to prepare a formal report that will brief me on the two most recent projects proposed by our operations..
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