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Please explain how volume based cost system react. I don't clearly understand the selected answer. Let's say, If total cost pool is stable and we
Please explain how volume based cost system react. I don't clearly understand the selected answer.
Let's say, If total cost pool is stable and we can control cost driver... The overhead applied depends on the production, If A use 20 000 Machine hrs and B uses 40 000 machine hrs, the o'h applied would be more on B.
Similar case, The more I make the more o'h cost is incurred and also applied to that product! (Correct me if I'm wrong)
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