Explore Westonci.ca, the premier Q&A site that helps you find precise answers to your questions, no matter the topic. Connect with a community of experts ready to provide precise solutions to your questions on our user-friendly Q&A platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
Sagot :
The company produces a few products with similar characteristics in a few departments.
Allocation criteria should relate to the production volume of a particular product type and the entire production process. Ideally, the basis for a particular type of product should be determined and calculated using direct methods.
The four main purposes of cost attribution are to predict the economic impact of planning and control decisions; to motivate managers and employees; to measure the cost of inventory and the cost of goods sold; justify the cost of the refund.
The allocation basis must be the cause or factor for allocating the costs. a good indication that the allocation basis is good is if the change in the allocation basis approximates the change in the actual cost. so as machine utilization drops, so does the actual cost of running the machine.
Learn more about Allocation here https://brainly.com/question/5322091
#SPJ4
Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.
