MANAGERIAL ACCOUNTING

ISBN-978-1-259-91706-6

For this week's discussion, select a business; preferably one you are knowledgeable about or one that you can learn about from someone (perhaps your place of employment, family business, friend's business, local business), and complete the following:

1. Decide which allocation base (direct labor hours, direct materials, machine hours, etc.) best reflects the overall level of activity in the business and should be used to allocate overhead (40 points)
2. Give examples of costs that are fixed and variable with respect to small changes in the allocation base (measure of activity) you have chosen (40 points)
3. Comment on the content of another student's post, without including congratulations.