5 advantages and disadvantage of coast princple

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04-01-2022
Technology and Home Economics

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5 advantages and disadvantage of coast princple

Sagot :

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YadaoCamellyidn YadaoCamellyidn · Answer 1 · 2022-01-04T20:00:50+08:00

Answer:

I HOPE MAKA TULONG : )

Explanation:

1. Wastes, losses, and inefficiencies are eliminated.

2. Cost-cutting

3. Determine the causes of profit or loss.

4. Offers advice on whether to build or buy.

5. Price Stabilization

1. The costing records only show past performance, but management is making decisions for the future.

2. The cost of the previous year is not the same as the cost of the following year. As a result, cost data aren't very informative.

3. The cost is calculated based on the capacity being fully utilized. The cost may not be accurate if capacity is only partially utilized.

4. Financial character expenses are not taken into account while calculating costs. As a result, the calculated cost is not always accurate.

5. Costs are absorbed in a predetermined rate in cost accounting. Overabsorption or under absorption of overheads occurs as a result.

Sagot :

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