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Why is the cost allocation method used by an organization an important part of its cost accounting system? references to be included along with solution.
Before discussing the importance of the cost allocation method adopted by organizations in their cost accounting system, let us understand what we mean by cost allocation?
Write your response in 500 words totoal and include references in end.
The Jung Corporation's budget calls for following production:Quarter 1 45,000 units Quarter 2 38,000 units Quarter 3 34,000 units Quarter 4 48,000 units. Each unit of production needs three pounds of direct material.
Planning is far more important than day to day control of discretionary costs. Do you agree or disagree? Discuss how planning and day-to-day control of discretionary costs may impact business decisions differently.
Isaiah's return on total assets and beginning merchandise inventory and the average net receivables during the period are $400,000. What is the amount of net credit sales for the period?
Provide calculations and reasons to support your answer. b. If Maximus Company has excess machine capacity but a limited amount of labour time available, to which product or products should the excess production capacity be devoted? Provide calculati..
Advise managers whether or not this contract is profitable. Evaluate any additional information that managers need to consider before accepting or rejecting this contract
Hampstead company's order entry department has 20 order entry operators. The cost associated with these 20 operators (salaries, fringe benefits, and supervision, as well as occupancy and equipment costs) is $873,600 per year.
Wysocki Company pays its sales force a fixed salary plus a 5% commission on all sales. Explain why sales force costs would be considered a mixed cost.
What are some of the nonfinancial measures provided by managerial accounting to assist managers in the decision-making process?
For what is cost-volume-profit (CVP) analysis used? What are some of the key underlying assumptions that make CVP analysis useful for decision makers? Why might decision makers use CVP analysis?
Midlands Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Compute the company's residual income for the year. (Omit the "£" sign in your response.)
Why is it necessary for a company to specify a relevant range of activity when making assumptions about cost behavior?
Which of the following products would typically be accounted for using a job order costing system? Which would typically be accounted for using a process costing system?
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