ABC costing might lead to: increasing the sales price of low-volume products.
- An organization's activities are identified using the activity-based costing (ABC) technique, which then allocates the cost of each activity to each product and service depending on how much of each is actually consumed. In contrast to traditional costing, this methodology assigns more indirect expenses (overhead) into direct costs.
- ABC is a technique for allocating overhead and indirect costs, such salaries and utilities, to goods and services. The ABC system of cost accounting is built around activities, which are defined as any occasion, project, or task with a clear objective.
- The costs associated with each product are divided by the quantity of units produced to determine the per-unit overhead costs under ABC.
Thus this is the answer.
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Answer:
United States can set up plants in China to avoid high tariffs
Answer: Pulsing
Explanation:
Pulsing could be described as combining flighting and continous schedule by using low advertising all year round and involving heavy advertising during peak periods.
This is noticed when a baseline of advertising is Increased during certain periods.
Answer:
overall effect for the first year will be an increase of 94 millions in the cash flow.
Explanation:
The chip will provide:
27 million x $ (14 - 10) each = 104 millions of gross profit
But, decreases gross profit from older chip at rate of:
2 million x $ (11 - 6) each = 10 millions per year
The Chip will generate 104 gross profit but reduce other chip division profit by 10 million
<u>overall effect for the first year will be of 94 millions postive</u>