To allocate corporate costs to divisions, the ideal situation would be for the allocation base to have the best cause-and-effect relationship with the costs.
Corporate overhead is constructed from the costs incurred to run the executive facet of an enterprise. those prices encompass the accounting, human sources, felony, marketing, and sales features. Whilst corporate costs are incurred, they're considered to be period charges, and so are charged to cost as incurred.
Overhead expenses are extraordinary from working fees, together with raw materials or employee wages, that are directly related to a company's services and products. Corporate costs may additionally track overhead and other fees to determine their destroy-even factors and perceive approaches to cut costs.
Commercial enterprise prices may also be called deductions. In widespread, organizations have some limitations and unique concerns for enterprise fee deductions. they may be commonly divided into corporate costs and operational costs.
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The marginal cost of the second candy bar is:$0.61.
<h3>Marginal cost</h3>
Using this formula
Marginal cost=Selling price for two-Selling price for one
Where:
Selling price for one=$0.89
Selling price for two=$1.50
Let plug in the formula
Marginal cost=$1.50-$0.89
Marginal cost=$0.61
Inconclusion the marginal cost of the second candy bar is:$0.61.
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Answer:
<h2>The accounting scandals of the early 2000s</h2>
led many people to question the legitimacy of:
allowing an accounting firm to do both consulting and auditing work for the same company.
Explanation:
1) Enron and WorldCom fell from grace during the scandal. And Sarbanes Oxley Act of 2002 was introduced to regulate the practise of auditing, which was before self-regulated.
2) People felt that accounting firms were getting so much revenue from consulting that they did not pay much attention to their auditing work.
3) They also felt that the consulting relationship was jeopardizing their responsibilities and commitments as independent auditors.
4) Since they were involved in consulting and offering management services, they paid a lip service to their main responsibilities and directly compromised their positions as verifiers of the truth and fairness in the presentation of financial statements.
5) According to Paul Krugman of The New York Times, “the Enron debacle is not just the story of a company that failed; it is the story of a system that failed. And the system didn’t fail through carelessness or laziness; it was corrupted.” People felt that the corruption arose from the performance of these separate services by the same auditing personnel and firm.
