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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.
It is a spontaneous source of finance that is commonly extended to business organization depending on the custom of the competition and trade prevailing within the organization and
Dynamic programming It is an extension which finds solutions to problems involving a number of decisions which have to be made sequentially. For example, the amount of a produc
Q. Evaluate a proposed investment? BMP Consulting (BMPC) conducted an analysis of Delta Corp. and found that the firm consists of two different divisions: Pet Lovers, a pet sup
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You recently began a job as an accounting intern at Indoor Racing Ltd. Your first task was to help prepare the cash budget for February and March. Unfortunately, the computer with
Moore Company uses process costing. The following information was available for October: During October, 1,000 units were started, and costs incurred during the month were
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