Registration is not essential for corporations True or false

in a buying center, the person who has the formal or informal power to choose or approve the selection of a supplier or brand i

Archy [21]

The answer is that the person is known as "decider".

There are many people present in an organization or company who are involved in the purchase decision, these people together makes a buying center. In buying center all those people have their own roles and are known as according to their roles. such as, purchasers, users, initiators, evaluators etc.

7 0

3 years ago

Requirement 3. Explain the accuracy of the product costs calculated using the simple costing system and the ABC system. How migh

Novay_Z [31]

Answer:

Explanation:

DIFFERENCES BETWEEN ACTIVITY-BASED (ABC) AND SIMPLE COSTING SYSTEMS

The major differences relate to the two-stage allocation process. In the first stage, simple costing system allocates indirect costs to cost centers (normally departments), whereas activity-based systems allocate indirect costs to cost centres based o activities rather than departments. Since there are more activities than departments a distinguishing feature is that activity-based system will have a greater number of costs centres in the first stage of the allocation process. in the second stage, simple costing system uses a limited number of different types of second stage volume based and non-volume-based cause-and-effect second stage drivers.

SIMPLE COSTING SYSTEM CAN PROVIDE MISLEADING INFORMATION FOR DECISION MAKING DECISIONS

The system tends to rely on arbitrary allocations of indirect costs, they rely on volume-based allocations. If volume-based allocation is used, high volume products are likely to be assigned with greater proportion of indirect cost than they have consumed, whereas low volume products will be assigned will be assigned a lower proportion. in these circumstances simple costing system will over cost high volume products and under costs low volume products. In contrast ABC system recognize that many indirect costs vary in proportion to changes to changes other than production volume.by identifying the cost drivers that cause the costs to change and assigning cost to cost objects on the basis of cost driver usage, costs can be more accurately traced . it is believed the cause-and effect relationship provides a superior way of determining relevant costs.

FOUR STAGES INVOLVED IN DESIGNING ABC

• identify the major activities that take place in an organisation

• Create a cost centre/cost pool for each activity

• Determine the cost driver for each major activity

• Trace the cost of activity to the product according to a products demand (using cost drivers as a measure of demand) for activities

ABC COST HIERARCHY

ABC cost hierarchy classifies activities along a cost hierarchy consisting of unit-level, batch-level, product sustaining, and facility-sustaining product. Unit level activities are performed each time a unit other product or service is produced. Examples include direct labour costs. Batch level activities are performed each time a batch is produced. Examples include setting up a machine or processing a purchase order. product sustaining activities are performed to enable the production and sale of individual product. Examples include the technical support provided for individual products and the resources required for performing product enhancement. Facility sustaining activities are performed to support the facility’s process. They include general administrative staff.

ABC PROFITABILITY ANALYSIS HIERARCHY

Categorizes costs according to their variability at different hierarchical levels to report different hierarchical contribution level. At the final level,

Facility or business-sustaining costs are deducted from the sum of product contributions to derive a profit at a business level unit.

The aim is to assign all organizational expenses to a hierarchical or organizational level where cause-and-effect cost assignment can be established so that arbitrary apportionments are non-existent.

5 0

3 years ago

When evaluating investments, you can get data from engineering, marketing and sometimes accounting. Do you think any of these or

BartSMP [9]

Answer: The evaluation of investments is important for knowing the real picture of the financial status of the organization.

Explanation:

The organization may have an internal bias that presenting the data for evaluating the investment. Being a member of the finance department I will suggest the organization get the financial statements and other finance-related documents so as to detect the internal bias in the investment statement.

4 0

3 years ago

Last year, a women's professional organization made two small-business loans totaling $23,000 to young women beginning their own

Fittoniya [83]

Answer:

a. Loan amount at 9%=5,000

b. Loan amount at 11%=$18,000

Explanation:

To determine the amount of each loan amount, first we need to derive the following equations;

a.

Step 1: Determine loan amount at 9%

Total Interest=Interest from 9%+interest from 11%

where;

Total interest=$2,430

Interest from 9%=principal amount at 9%×interest rate×number of years

Interest from 11%=principal amount at 11%×interest rate×number of years

and;

Principal amount at 9%=x, interest rate=9/100=0.09, number of years=1

Principal amount at 11%=23,000-x, interest rate=11/100=0.11, number of years=1

replacing;

2,430=(x×0.09×1)+0.11(23,000-x)

2,430=0.09 x+2,530-0.11 x

(0.11 x-0.09 x)=2,530-2,430

0.02 x=100

x=100/0.02

x=5,000

Loan amount at 9%=5,000

b.

Step 2: Determine loan amount at 11%

Use the expression below to determine the loan amount at 11%;

Loan amount at 11%=Total loan amount-loan amount at 9%

where;

Loan amount at 11%=unknown, to be determined

Total loan amount=$23,000

Loan amount at 9%=$5,000

replacing;

Loan amount at 11%=23,000-5,000=$18,000

Loan amount at 11%=$18,000

3 0

4 years ago

The ____ of a corporation can be defined as a set of values, beliefs, goals, norms, and ways to solve problems shared by members

Dovator [93]

Answer:

The correct word for the blank space is: corporate culture.

Explanation:

Corporate culture represents the values, norms, and objectives a company has and that have been obtained and changed during its years of operations. The corporate culture is complemented by its ethical culture that rules the employees' individual behavior in the work frame and as a result of the interaction among other workers.

8 0

3 years ago