I think it is A or B but it would be funny if it was D
The skill to do this is called <span>Discriminating
You discriminate one object from another, which is why it is said that someone can have discriminating taste if they're good at telling similar things apart.</span>
Answer:
The following are the benefits:
- Ability to bear running and recurring costs;
- Efficiency of production
Explanation:
The practice of distributing indirect costs to revenue-generating projects is being referred to as overhead allocation.
The overhead is determined by the sum of indirect labor and incurred expenses. This can be represented by 25% - 50% of the expenses incurred by a firm.
In details the benefits of allocating based on Demonstrated Capacity are the following:
- Waste and defects would be controlled during production;
- While the market is highly volatile and competitive it becomes easier to make accurate pricing;
- A firm in a multi-product business will be able to evaluate the profit margin of each product;
- This can help the management in decision making especially when the cost information is being supplied;
- You can easily evaluate the effectiveness of a department;
- It helps you to fix the price of a product
