Wilkerson Case Study

Lessons learned from this topic and case study: 1. Managers choose to be able to estimate the cost of different responsibility centres and products to go to with monitoring the performance of different departments and also to answer with fillet point making about product determine, profitability of man-to-man products, assist with decisions when making changes to product lines and various other managerial requirements such as controlling cost and valuing inventory for monetary statements. 2. Dividing the commercial enterprise into cost aspirations such as departments or products can assist with creating great accuracy when allocating cost to singly cost aim. 3. The more we break down the job into activities and cost objective lenss, the greater the accuracy of allocating be to each object. 4. cost can be allocated as direct or substantiative costs link to each cost object. Indirect costs must be Is this analyse helpful? Upgrade your coun t on to read more and entrance fee more than 600,000 entirely like it! get better grades estimated for each cost object and it is important to assess how much of the costs allocated to each object are validating as the greater the proportion of indirect costs allocated, the greater the margin for mistake in these estimations. 5.

Managers need to be careful of all overpricing or under-pricing goods delinquent to dissever of costs to each product. As was shown with the Wilkerson case on yet analysis of costs using the activity ground be method the company had been under-pricing some goods while over pricing others. This was affecting their ! profits and their ability to make heavy military control decisions on the pricing of products to meet market demands. 6. natural operation based costing is more complex to use barely used correctly should improve the accuracy of allocating indirect costs to cost objects. This in turn produces more accurate parceling of costs and assists to make more informed management decisions. 7. Managers should invoke up the...If you want to get a full essay, embed it on our website: BestEssayCheap.com

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