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The best way to figure cost, and driver cost is to install a vehicle tracking system. This will give you very accurate reporting on employee use and time. In addition, you can track your vehicles and be notified if they leave a route have been stolen and much more. I recommend the Millennium Plus, it is the latest technology and is very good value offering many useful features.
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BeauActivity-based costing (ABC) is a cost accounting method that assigns overhead costs to products based on the activities they require. Cost drivers are factors that directly influence the cost of an activity and are used to allocate costs in ABC. By identifying cost drivers, companies can more accurately allocate costs and understand the true cost of their products or services.
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How is cost determined?
Cost is determined by calculating all expenses related to producing a product or providing a service, including materials, labor, and overhead costs. These costs are then used to establish the selling price of the product or service to ensure a profit margin. Various costing methods, such as job order costing or activity-based costing, can be used to determine costs accurately.
How can activity based systems help managers in a global marketplace?
Activity-based systems can help managers in a global marketplace by providing accurate cost information for decision-making. By tracking costs at a detailed activity level, managers can better understand the cost drivers of their products/services across different markets. This enables them to identify areas for cost reduction or optimization, leading to improved competitiveness and profitability in the global market.
How much does oak wood cost?
The cost of oak wood can vary based on the type of oak, quality, and supplier. On average, oak wood can range from $3 to $10 per board foot, with specialty and premium varieties costing more. Prices may also fluctuate based on regional availability and market demand.
What is relevant rang of activity level in an organization in accounting?
The relevant range of activity level in accounting refers to the range of operations over which a company's cost behavior patterns remain consistent. It helps in making accurate cost predictions and budgeting decisions based on historical data. Understanding the relevant range is crucial for management to optimize resources effectively.
What are examples of structural cost drivers?
Examples of structural cost drivers include the size and complexity of an organization, the level of automation and technology used in operations, the geographical spread of operations, the nature of the industry in which the organization operates, and the scale of production or sales volume.
