Does increasing the number of cost pools always increase the accuracy of allocations under an ABC system?

Question:

Does increasing the number of cost pools always increase the accuracy of allocations under an ABC system? Explain your answer.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Cost Management Measuring Monitoring And Motivating Performance

ISBN: 392

2nd Edition

Authors: Leslie G. Eldenburg, Susan K. Wolcott

See More Books

Question Posted: Jan 26, 2015 02:06 AM

See More Questions

For a cantilever beam (600 x 350) shown, Tu @d=30 kN.m. fc'= 35MPa and ty= 420 MPa. The area of stirrups reinforcement (At)/s required for forsion only is equal to: 600 mm 4025 75 mm 350 mm + a...
1. Why might increasing the number of cost centres (pools) result in the reporting of more accurate product costs? 2. What other factors, besides product diversity, might enable a simplistic product...
The argument that increasing the number of casinos in a state will increase overall tax revenue in the state is a. Substantially correct, because they pay substantial taxes. b. Overstated but still...
How would this photo be different if the two people were both Americans?
Which pair represents isotopes? He
Discuss the challenges with identifying cash flows associated with such a complex competitive method.
8. Assume that the market index is 100. Show that if the expected return on the market is 15%, the dividend yield is zero, and volatility is 20%, then the probability of the index falling below 95...
1. How has Warren Brown been able to finance the growth of his company? 2. What methods has Cake Love used to manage cash flow? What others might they adopt? 3. What types of cash flow management...
empt=2028766&page=1 Cardpdf senior pictures - Connect - To Do As.. w Wiley PLUS Login Pa... geo10S Top Hat Editor Piktochart EMail Service Desk MyBooks This course 5 Lauren Lance Company produces...
Assume you are the brand manager of Mountain State Bottled Water. This new brand competes in a product category with several well-known brands. Your marketing communications objective is to generate...
Describe the six ABC cost hierarchies.
Does measurement error increase or decrease when ABC systems are implemented? Explain your answer.
Discuss the advantages of buying a franchise.
The answer above is NOT correct. The value of (2x + 1)(x + x)dx is
Review the resource on organizational theory. Explore the various theories and select one to use for this Discussion. Consider the strengths and limitations of the chosen theory. Compose an analysis...
How do the locations of Australian department store Myer affect the ability of the other factors of the operating model canvas (suppliers, organization, processes, and information/management systems)...
Critical Reading Review: The Exclusion of Latinos from American Media and History Books Read the article. After reading the article, answer the following questions: 1. What purpose do you think the...
1. How does the proposed market segment of residential contracts differ from Smith Electric's current market segment? 2.What does a SWOT analysis tell us about Smith Electric's ability to enter a...
A Wild, Wood and Bine enter into a joint venture for dealing in antique brass figures. The following transactions took place: $19 \mathrm{X} 4$ Mar 1 Wild rented a shop, paying 3 months' rent \(...
Prove that if Σ an is absolutely convergent, then a. an
What did studies of P-wave and S-wave shadows reveal about Earths interior?
Why are product costs also called inventoriable costs?
What is the most important difference between a manufacturing firm and a service industry firm, with regard to the classification of costs as product costs or period costs?
List, describe, and give an example of each of the five different types of production processes.
Ventaz Corp manufactures small windows for back yard sheds. Historically, its demand has ranged from 30 to 50 windows per day with an average of 4646. Alex is one of the production workers and he...
Which of the following statements is not true regarding the $500 credit for dependent other than a qualifying child credit. Cannot be claimed on the same tax return if the child tax credit is also...
Grind Co. is considering replacing an existing machine. The new machine is expected to reduce labor costs by $127,000 per year for 5 years. Depreciation on the new machine is $57,000 compared with...

Does increasing the number of cost pools always increase the accuracy of allocations under an ABC system?

Question:

Step by Step Answer:

No increasing the number of cost pools and cost drivers can increase measurement error b...View the full answer

Cost Management Measuring Monitoring And Motivating Performance

Students also viewed these Managerial Accounting questions