The weaknesses of an incremental budgeting system, Cost Accounting

Assignment Help:

Traditional budgeting  systems are  incremental  in nature and  tend  to  focus on  cost  centres.  Activity-based  budgeting  links  business  planning  to  the  budgeting  process  with  a  view  to searching the most cost-effective means of achieving objectives.  
Requirements:

(a)  Describe the weaknesses of an incremental budgeting system.  
(b)  Explain the main  features of an activity-based budgeting system and comment on the benefits claimed for its use.  


Related Discussions:- The weaknesses of an incremental budgeting system

What is the amount of cost of goods manufactured, Wayne Company's beginning...

Wayne Company's beginning and ending inventories for the month of June were as follows: June 1 June 30 Work in progress $145,000 171,000 Finished Goods 85,000 78,000 Production

Developing and insight into labour and material variance, Developing and In...

Developing and Insight into Labour and Material Variance The calculation of labour and material variances is not sufficient; we require knowing how the variance could have typ

What was the market rate of interest, Q. Given the below, partial bond accr...

Q. Given the below, partial bond accretion table, what was the market rate of interest when the bond was issued?     Cash     Interest

Which of the four types of costs would include direct labor, Which of the f...

Which of the four types of costs would include Direct Labor? A. Unit-Level B. Batch-Level C. Product Sustaining D. None of the above

Compute the break even point, Park & Morgan, a law firm, is considering ope...

Park & Morgan, a law firm, is considering opening a legal clinic for midde- and low income clients. The clinic would bill at a rate if $18 per hour. It would employ law students as

What is callable preferred stock, What is callable preferred stock? Why do ...

What is callable preferred stock? Why do corporations issue such stock? Given the different features that are associated with stock (callable, cumulative, preferred, etc.), what ty

Standard costing, Standard Costing A standard cost is a predetermined ...

Standard Costing A standard cost is a predetermined calculation of how much is supposed to be incurred under specific particular working conditions. It is not an average of pa

Economic order quality or eoq, Economic Order Quality or EOQ Define th...

Economic Order Quality or EOQ Define the model and the three methods of computing the EOQ. 1. Assumptions of the model. Illustration The given information was extra

What does the cost principle, What does the cost principle mean for a compa...

What does the cost principle mean for a company's income statement?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd