1.absorption costing does not understate the importance of fixed cost.
2.fixed overhead are essential for production.
3.closing stock values by including the share of fixed production overhead will be valued on the principles required for financial accounting valuations of stocks.
4.company may not be clear whether contribution by each product is enough to cover fixed costs , whereas by charging fixed overheads to a product it is possible to ascertain whether it is profitable or not.
2.fixed overhead are essential for production.
3.closing stock values by including the share of fixed production overhead will be valued on the principles required for financial accounting valuations of stocks.
4.company may not be clear whether contribution by each product is enough to cover fixed costs , whereas by charging fixed overheads to a product it is possible to ascertain whether it is profitable or not.
closing stock values by including the share of fixed production overhead will be valued on the principles required for financial accounting valuations of stocks. ricorso cartella di pagamento
ReplyDeleteconsistency with external reporting
ReplyDeletehelps in the reduce fictitious losses.
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