Accounts Lecture 20-02-2008
Posted by: kaizenlog in Accounts, tags: Accounts Lecture 20-02-2008Accounts Lecture 20-02-2008
Book: Pike + Neale - Corporate Finance and Investment decisions & strategies -> PrenticeHall 5th edition.
Cost analysis and cost ascertainment.
Information for planning and control.
Information for decision making and performance appriasal.
An overview of cost and management accounting.
Justification for using predetermined overhead rates
Actual overhead rates are not used because of:
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Delay in product costs if annual rates are used.
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Fluctuating rates if monthly rates are used.
Required is normal product costs based on average long-term production.
Use estimated overhead costs and activity over a long-run period to compute overhead rates.
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