Limitations of Traditional Costing System
The following are the limitations of traditional costing system.
Suppose a manufacturing company is making two products, X and Y. The direct material cost for the products is Rs.1,00,000 and Rs.2,00,000 correspondingly. The sum overheads are Rs.1,50,000 and the company accepts direct material cost as the basis for absorption. The absorption % of overheads will be 50% of the direct material. [1,50,000/3,00,000 X 100 = 50%] So the overheads absorbed in the product X will be Rs. 50,000 and for Y, they will be Rs.1,00,000 [50% of the overheads] Product Y has a larger share of the overhead costs like the material costs are higher than that of X. Though, actually product Y might be requiring lesser efforts in the indirect activities than X, but only since it has a higher material costs, it will be charged along with larger amount of overheads. So there is a distortion in the total cost. This distortion in costs might lead to incorrect decisions in various areas such as make or buy, pricing decisions, acceptance of export offer etc.
There should be linkage among the activities and the costs. Likewise the information should be presented concurrently that means that information should be made presented when the activities are going on. Information presented after the activity is over will not be of very much use. As described above, the Activity Based Costing system is developed because of the limitations of the traditional costing system.
Latest technology based Cost Accounting Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Limitations of Traditional Costing System homework help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Limitations of Traditional Costing System, project ideas and tutorials. We provide email based Limitations of Traditional Costing System homework help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Limitations of Traditional Costing System. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Cost Accounting homework help and assignment help services. They use their experience, as they have solved thousands of the cost accounting assignments, which may help you to solve your complex issues of Limitations of Traditional Costing System. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
tutorsglobe.com leverage consequence on roe assignment help-homework help by online leverage tutors
Natural Products Chemistry II tutorial all along with the key concepts of Natural Products Research Priorities, pharmacological or biological activity, chemical compounds, integrative health practices
tutorsglobe.com equivalent and compensating variation assignment help-homework help by online quasi-linear utility functions tutors
tutorsglobe.com atomic structure assignment help-homework help by online inorganic chemistry tutors
tutorsglobe.com pathogenesis and pathology of trachoma assignment help-homework help by online chlamydia tutors
it is significant to take great care throughout the bearing removal to make sure that the bearing, shaft and housing are not broken. bearing removal is best accomplished through using a bearing puller for standard outer and inner rings.
tutorsglobe.com nineteenth century art assignment help-homework help by online humanities tutors
tutorsglobe.com dissociation equilibrium of pcl5 assignment help-homework help by online dependence of dissociation constant tutors
tutorsglobe.com evidences against blending theory assignment help-homework help by online concept of heredity and variation tutors
Most large businesses are busy in a number of dissimilar operations, with each containing its own levels of profitability, growth and risk.
tutorsglobe.com atopy assignment help-homework help by online hypersensitivity-anaphylaxsis tutors
other properties of liquids tutorial all along with the key concepts of vaporization, differences between evaporation and boiling, trouton's rule, liquid crystals and liquid crystal phases
tutorsglobe.com hypertonic-hypotonic-isotonic solutions assignment help-homework help by online osmosis tutors
Theory and lecture notes of Access modes and Compatibility all along with the key concepts of access modes and compatibility, hierarchical locks. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Access modes and Compatibility.
Free AP Study Guide, AP Test Papers, AP Practice papers, AP Test pattern and general information, Find AP exam information and resource, material free at Tutorsglobe.com
1960653
Questions Asked
3689
Tutors
1482999
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!