Give two reasons why most organizations use an annual period rather than a weekly or monthly period to compute budgeted indirect costs ?
1. The numerator reason--the longer the time period, the less the influence of seasonal
patterns in overhead costs, and
2. The denominator reason--the longer the time period, the less the effect of variations in
output levels or quantities of the cost-allocation bases on the allocation of fixed costs.
1 comments:
Very good service!thank you.
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.