Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. let’s consider costing for a service organizatio

Let’s consider costing for a service organization. Assume you are a consultant for a law firm....

50.1K

Verified Solution

Question

Accounting

Let’s consider costing for a service organization. Assume youare a consultant for a law firm. The firm currently has notraditional cost accounting system in place. A partner has taken acourse in management accounting and wants to understand traditionaland activity based costing. Explain to the partner how atraditional overhead rate is determined and what would be a gooddenominator activity to use as the base. Also explain what is meantby activity-based costing and how it would might lead to betterdecisions for the firm.

Answer & Explanation Solved by verified expert
3.9 Ratings (360 Votes)
Under traditional costing the overhead allocated using one single predetermined rate for all the activities Predetermined overhead is the rate which is used to apply overhead to services and is usually completed and calculated at the beginning of the year by dividing the overhead cost with the allocation based In manufacturing industries    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

9) Based on the premise that, other things equal, countries would prefer a fixed exchange rate,...

Finance
Q

1. Explain the three key functions of the Bank of Canada In the Canadian banking system, the...

Economics
Q

Find the general power series solution for the differential equation 2x^2y''-xy'+(x^2 +1) y =0 about x=0 (Answer should...

Advance Math
Q

Use technology to find the? P-value for the hypothesis test described below. The claim is that for...

Basic Math
Q

Required information [The following information applies to the questions displayed below.] The accounts and balances for Paw Prints...

Accounting
Q

QUESTION 1 When NAD becon O NAD has hea

Biology
Q

4 An E coli culture is moved from a 37 C incubator which is its...

Biology
Q

O Determine which figure has the greater density 9 cm 9 cm 6 cm 400...

Geometry
Q

How do the functions in the table compare?Since x-intercepts indicate the amount of eachbacteria at...

Algebra
Q

Morning Sky, Incorporated (MSI). manufactures and sells computer games. The company has several product lines...

Accounting
Q

Lonergan, Inc., a calendar year S corporation in Athens, Georgia, had a balance in AAA...

Accounting
Q

stock a market risk premium 6% risk free rate 6.4% beta 1,1 ...

Finance