Explain the term "cost unit" and give some examples. Discuss reasons to use cost allocations and when it might be appropriate not to use cost allocations. What are variable costs, fixed costs, and mixed costs? Define the term opportunity cost. How may this cost be releva...
Cost allocation is used to optimize prices, set budgets, and perform financial analysis. The true costs of something inform how the business must plan and operate to maximize profits. The most common way businesses leverage cost allocations in their operations include: Setting prices: By understandin...
Examples of Cost Allocations The following are only a few of the many cost allocations that occur in some companies or organizations: The cost of a manufacturing building is allocated to each of the years that the building is expected to be used. Each year’s depreciation is allocated to the...
Learn how to achieve the smartest approach to allocations: properly assigning costs to the areas that benefit from those costs the most.
Discuss reasons to use cost allocations and when it might be appropriate not to use cost allocations. Explain the Two Process Costing Methods to calculate EUP. What is activity-based costing? What are some of the key elements of activity-based costing? How does this met...
Cost reduction.Effective resource allocation can result in significant cost savings because it increases efficiency, reduces waste and avoids costly mistakes, setbacks and delays. Challenges of resource allocation There also are challenges associated with the resource allocation process, including the followin...
A financial advisor can help you determine the right investment portfolio allocations. Investors also need to take a disciplined approach to their portfolios, know their goalposts and establish objectives based on their risk tolerance. Picking reliable companies and holding on to those stocks for many...
Answer and Explanation:1 Costs included/excluded in the inventory: The following costs are to be included in the inventory cost: 1. Cost of the material 2. Freight... Learn more about this topic: Inventory in Business | Definition & Examples ...
The three main asset classes are equities, fixed income, and cash and cash equivalents. Each asset class has different risks and return potential, so each will behave differently over time. No simple formula can find the right asset allocation for every individual investor. ...
(or quant funds) normally have much smaller investment teams than fundamentally managed funds. However, quantitative funds tend to have higher turnover than fundamentally managed funds and often have higher trading costs. Trading costs, however, are not nearly as significant as the cost ofhuman ...