Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. Companies sometimes under absorb and over absorb cost leading to high cost, discuss with suitable example ways through which a cold store established

  

a. Companies sometimes under absorb and over absorb cost leading to high cost, discuss with suitable example ways through which a cold store established in Malamata market can over or under absorb and how this can be rectified by the management accountant. [10 marks] b. Discuss the implications of the measure to be adopted by the cold store in the process of rectification of the over and under absorption. [5 marks] c. In the determination of profits using absorption and marginal costing, a lot of companies tend to prefer marginal costing, using stock valuation as your basis, discuss how absorption costing would present a better profit position that marginal costing, you are to illustrate with you're a suitable example.

Step by Step Solution

3.43 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

a ANSWER 1 Over absor ption of Rent Cold stores typically require high rents and if the management accountant fails to adjust the rent absorption rate it can lead to over absor ption of rent This can ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

9th Edition

1337614689, 1337614688, 9781337668262, 978-1337614689

More Books

Students also viewed these General Management questions

Question

What does the term homoscedasticity mean?

Answered: 1 week ago