An allocation base:

Q: Define each of the following terms: g. Decision tree; staged decision tree; decision node; branch

A: Decision tree: A decision tree is a method of arranging a set of consecutive decisions, which is…

Q: Explain “gain contingency”.

A: MEANING OF GAIN CONTINGENCY:- A gain contingency is an uncertain situation that will be resolved in…

Q: What is an operating segment?

A: Operating segment: It is defined as providing information about the business actives with an…

Q: Define conversion ratio

A: Ratios are used in financial analysis to determine different aspects about the financial condition…

Q: Describe the benefits of decentralization.

A:

Q: How is RI calculated?

A:

Q: What is goal congruence?

A: Organizational structure: An organizational structure refers to a system that outlines how certain…

Q: Define split-off point.

A: Contribution approach: The contribution approach calculates the net profit by calculating the…

Q: Define Double-entry system.

A: Double entry system: Double entry system is a way of accounting or bookkeeping which implies that…

Q: What is a reportable operating segment?

A: Operating segment is a segment of a company which can generate its own revenue and has its own…

Q: What are special allocations?

A: Introduction: Special allocation for a business is considered as distributing profits and losses…

Q: Define Share Issue Costs.

A: Share:   It represents the unit of ownership interest in a corporation. A capital of a company is…

Q: explain about functional and non functional requirements

A: The question is asking to explain the concepts of functional and non-functional requirements, which…

Q: what is Reference control ?

A: I assumed as a question, as what is meant by the reference  to cost control?

Q: Define common pool problem

A: The common pool resources are those resources that are commonly used by everyone and no one is the…

Q: Define conversion price

A: Introduction: The conversion price is stated when the security is delivered. In case of a…

Q: Can you please provide me some examples or practice problems to calculate allocation rate?

A: Activity based costing (ABC) is the modern method for the classification of various expenses to…

Q: Explain consignment arrangement with example.

A: Goods in transit: Goods in transit can be described as the inventories which are shipped by the…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.