Post by account_disabled on Mar 4, 2024 12:06:45 GMT
The growth of period costs There is a speed of cost growth in each period throughout the year. Companies that have rapid period cost growth rates will find it difficult to allocate costs so the level of possibility for cost distortion to occur is high. So companies that have a rapid period cost growth rate are suitable for using activity based costing analysis . Pricing freedom There is a level of company independence in determining prices so as to produce profitable products. Usually companies that have no freedom in determining prices are due to tight competition with competitors.
This competition has an impact on determining the right costs for companies so they can B2B Email List compete competitively in the market. Period expense ratio The possibility of material product cost distortion occurs because it is related to the level of influence on reducing or increasing costs with the proportion of profit or profits in the company. This distortion can be minimized by using the activity based costing method in the company. Strategic considerations Information about the costs incurred by the company can usually influence the management decisionmaking process in making strategies for the companys progress.
The greater the influence of cost information in decision making the more suitable it is for a company to use activity based costing analysis in calculating the costs that will be incurred by the company. Cost reduction effort The company has accurate reports regarding period cost allocation for internal company management decision making. This is very important because the accuracy of the period cost allocation report is also related to the evaluation of the companys internal management. Analysis of frequency The high or low number of activities carried out by the company of course influences the cost analysis of a companys products. to the frequency of cost information needs that the company has. The higher the level of frequency the more accurate the.
This competition has an impact on determining the right costs for companies so they can B2B Email List compete competitively in the market. Period expense ratio The possibility of material product cost distortion occurs because it is related to the level of influence on reducing or increasing costs with the proportion of profit or profits in the company. This distortion can be minimized by using the activity based costing method in the company. Strategic considerations Information about the costs incurred by the company can usually influence the management decisionmaking process in making strategies for the companys progress.
The greater the influence of cost information in decision making the more suitable it is for a company to use activity based costing analysis in calculating the costs that will be incurred by the company. Cost reduction effort The company has accurate reports regarding period cost allocation for internal company management decision making. This is very important because the accuracy of the period cost allocation report is also related to the evaluation of the companys internal management. Analysis of frequency The high or low number of activities carried out by the company of course influences the cost analysis of a companys products. to the frequency of cost information needs that the company has. The higher the level of frequency the more accurate the.