WebExpert Answer. 100% (7 ratings) The major disadvantage associated with broad averaging is that it can result in overapplication or underapplication of overheads to different products/services without taking into account the actual usage of activities by these products/services. Add …. View the full answer. WebA) A peanut-butter costing system typically has more-homogeneous indirect cost pools. B) A peanut-butter costing system broadly averages or spreads the cost of resources uniformly to cost objects. C) A peanut-butter costing system assumes that all costs are variable. D) In a peanut-butter costing system, costs of activities are used to assign ...
Volume-Based Overhead Rate: Definition, Features and Limitations
WebBroad averaging is also known as peanut butter cost is a costing approach of distributing the overall overhead cost of resources on the average basis to the associate cost of product. Indirect Cost or Overheads: Indirect cost is that cost which cannot be directly identified with the manufacturing of a particular product. WebMay 27, 2024 · A cost accounting system has five parts: Input Measurement Basis The cost accounting system starts with determining the type of costs that flow into the inventory accounts. There are three types of Input Measurement Basis – Historical, Normal Historical, and Standard Historical. Also Read: Cost Accounting and Management Accounting can you get cod bo2 on ps4
Solved which of the following statements is true of a …
WebA) L3 pack is undercosted by $5,550 B) L7 pack is undercosted by $5,450 C) L3 pack is overcosted by $5,550 D) L7 pack is overcosted by $5,550 7) Which of the following statements is true of activity-based costing? A) Activity-based costing ignores the allocation of marketing and distribution costs. WebA) A peanut-butter costing system typically has more-homogeneous indirect cost pools. B) A peanut-butter costing system broadly averages or spreads the cost of resources uniformly to cost objects. C) A peanut-butter costing system assumes that all … WebA peanut butter costing system typically has more homogeneous indirect cost pools, A peanut butter costing system assumes that all costs are variable A peanut butter costing … can you get cobra if you were fired