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Manage Accounting Assignments with the Cause-And-Effect Criterion Homework Help
Dealing with the cause and effect criterion under accounting is something most students falter in. The cause-and-effect criterion assignment help offered by us at myhomeworkhelp.com aims at assisting students to manage the workload of different assignments and ensure top grades without fail.
Cost allocation decisions and cause-and-effect criterion
Allocations of direct and indirect costs are the background in which the cause-and-effect criterion comes into significance in accounting. Allocating costs is one of the most important decision-making tasks of a company. The criteria of compensations, bonuses, and promotions are calculated on the basis of total revenue and profit.
It is important for a company through the justification of cause-and-effect to come up with viable options to defend the policies of allocating costs undertaken. The decision-making process is based on four main criteria.
Our manuals as the cause-and-effect criterion homework help enumerate the criteria as follows:
- It is primarily important to record those actions which are leading to incurring of costs.
- Advantages received as a result of the costs being incurred are identified by the company.
- While engaging in discussions related to cost allocations, there is more than one party involved. Therefore discussions of the contract require proper justification of all the costs.
- The objects of cost should be equipped to handle the burden of the costs.
As the discussion proceeds, the student must come to realize that the concepts of cause and effect are costing concept which is activity based. Our manuals as the cause-and-effect criterion assignment help assist the learner to deal with all the doubts related to this concept.
Relationships under cause-and-effect criterion
Each investment has several sides to it. When a company decides to launch a product with different varieties, say a refrigerator of different styles, then costs must be allocated not just for labor invested but also the machinery which is used for producing the styles.
Now does a company ensure profits? When all the designs start selling out or one particular design gains popularity then investments are directed towards production of that product and reduction takes place in the other varieties. Also on producing quality products, the costs related to repairs fall, and that benefits the company.
Every action has a reaction, and the cause and effect criterion help learners understand the decisions taken by different organizations as well as the though process and considerations behind each allocation of cost. Manuals as the cause-and-effect criterion homework help from us can be used in case of any doubts.
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