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I’m unable to calculate cost per driver for machine. The question is from online notes. it’s example 1 . Can someone help me
I work through all of the examples in my free lectures.
There is no point in using our free lecture notes without watching the lectures. It is in the lectures that I explain and expand on the notes. If you are not watching the lectures for any reason you must buy a Study Text and study from there.
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Sir Whats the meaning:
The Choice of both activities and cost drivers might be inappropriate ??
The Benefit obtained from ABC might Not justify the cost???For the first sentence:
It is up to the company to decide what they think is causing the costs to occur. But it is only their opinion – there is nothing certain – and so their thoughts could be wrong.
For the second sentence:
Although using ABC may save money for the company (for the reasons I explain in my lectures), it costs money to spend the time deciding what the cost drivers etc. are (it costs money because people are having to spend time and the people have to be paid). As a result, it could end up being the case that the costs of doing ABC are more than the savings that they make.
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Thank you sooo much sir
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Sir i have understood this Lines so could u say wether i have understood right..
Low volume are Charged to low volume Products= i have understood by this line That it means less Units are Charged to less overheads…
High volume are charged to high volume products = More Units are charged to more overheads,…
ABC HAS TYPES OF COST DRIVER
1=VOLUME BASED
2=TRANSACTION BASED
I did Not what is volume based????
TRANSACTION based = i understood That more Aktivity needs more overheads and less activities needs less overheads..
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