Define costing refinement? Describe three guidelines for costing refinement ?
The use of simple costing system that reduces the use of broad averages for assigning the cost of resources to cost objects.
Three guidelines for refinement are
1. Direct cost tracing- Classify as many of the total costs as direct costs as is economically feasible.
2. Indirect cost tracing-Expand the number of indirect cost pools until each of these pools is more homogenous.
3. Cost allocation base-Use the cause-and-effect criterion, when possible, to identify the cost-allocation base for each indirect-cost pool.
1 comments:
Tanks for every ansewer Im work eathly so tjanks again
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.