Answer:
An activity-based approach refines a costing system by focusing on individual activities as the fundamental cost objects. It uses the cost of these activities as the basis for assigning cost objects such as products or services.
Explanation:
This is a costing system that works by allocating costs to different cost items based on the activity level of these items. This as opposed to traditional costing methods, assigns indirect or overhead cost to products or services less arbitrarily through identifying products or services with most activity or less activity and allocating costs to them based on this measurement.
Answer:
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Answer:
Explanation:
Supply and demand should be thought of together. Suppose you need a hairbrush. You go to your local pharmacy and ask one of the clerks if they stock hairbrushes. They say no they don't. If the pharmacy is supposed to have hairbrushes and they don't, then the supply side does not meet the demand. That's too little supply.
So next you try the nearest grocery store and they say "Yes. For you it's $2.99."
Now you represent the demand, and the store represents supply. They have the hairbrush you want. But the store won't stock hairbrushes if in the last year, you are their first customer who wanted a hairbrush. You still provide the demand, but there is no supplier. So you go without a hairbrush.
The same thing can happen to the supply side. The store has 25 hairbrushes. You only want one. There are too many brushes on the supply side. The store, if they do that with everything, will go broke. Too much supply is just as bad as not enough.
