Identifying Unused Capacity for Engineered and Discretionary Overhead Costs
Management accounting measures, analyses and reports financial and non-financial information helping managers fulfill the long term organizational objectives. Our critical analysis of identifying unused capacity for engineered and discretionary overhead cost homework help throws light on certain aspects of cost accounting.
The write-up is designed to help students understand the concept of discretionary and engineered costs and unused capacity of such factors.
Identifying unused capacity for engineered and discretionary overhead cost assignment help deals with engineered costs as well.
The above explanation clarifies the basic idea of identifying unused capacity for engineered and discretionary overhead cost homework help.
For all practical purposes, we consider a modern approach towards unused capacity of the relevant resources.
We purchase resources under two circumstances
We use up the entire resource that are acquired based on need. Hence the cost of the resource supplied is equal to the cost of the resource used. In the second case, there might be some unused resource.
Identifying unused capacity for engineered and discretionary overhead cost homework help states how the underutilized quantity exists in both categories of costs.
A traditional approach vis-à-vis activity based cost systems reveals the difference that stems from the underutilized capacity of the relevant cost factors. It allows students analyze the pricing and product mix to arrive at the cost based activity.
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