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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.
This variable deals along with the granting of credit. On one great all the customers are granted credit and conversely, none of them are granted credit irrespective of their credi
Strengths and weakness of net book value and pay back method
what is Long term budgets Long term budgets: The budgets are prepared to depict long term planning of the business. The period of long term begets various between five to ten
calculate the net operating income , evergreen corp has provided the following data: sales per period 1000 units ,selling price $ 40 per unit , variable manufacturing cost 12 p
Features of product life cycle costing Product life cycle costing is important due to the following features: 1) product life cycle costing involves tracing of costs and re
State Material price variance Difference among standard price and the actual price of the material is the material price variance. This variance arises because of various facto
Examples
Collection float considers to the gap among the times, payment is made through the customer/debtor and the time while funds are obtainable for use in the company's bank account. In
Disadvantages of the cost accounting: 1. It is unnecessary: it is argued that maintenance of the cost records is not necessary and involves duplication of work. It is based o
Anthony''s orchard
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