Question

What is broad​ averaging, and what consequences can it have on​ costs?

Answer 1

 What is broad​ averaging, and what consequences can it have on​ costs? Broad averaging is when a company or organization spreads the cost of resources across different objects to help the individual products or services stay equal. When a company does this they are assigning the costs of resources uniformly to cost objects. Broad averaging directly relates to costs because they can mislead an organizations data reports by spreading out the costs inappropriately. 

Answer 2

For the answer to the question above, when applying that to a business, you are ignoring the variation in the consumption of resources by the different cost of objects or products that can lead to inaccurate and misleading cost data. In that result, it can negatively impact the marketing and operating decisions.

That costing method or approach uses a broad averaging for applying the cost of resources uniformly to cost objects. When in fact those are not uniform ways at all.