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An advantage to using budgeted usage, rather than actual usage, for the allocation base is that

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6 years ago

An advantage to using budgeted usage, rather than actual usage, for the allocation base is that

An advantage to using budgeted usage, rather than actual usage, for the allocation base is that
A) GAAP/IFRS requires it for comparability to previous years.
B) variable costs are lower.
C) management does not have to be accountable for actual costs since the system only deals with budgeted costs.
D) it is consistent with a short-run time horizon.
E) user divisions will know their allocated costs in advance.

Textbook

Cost Accounting: A Managerial Emphasis, Canadian Edition

Edition: 7^th

Authors: Horngren, Datar, Rajan, Beaubien

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dxpayne Author

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6 years ago

this is exactly what I needed

ealvino1610

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Brilliant ツ

jamesbove

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2 hours ago

Thanks

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