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CA DB 3 - with the tool to run reports quickly and as a...

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What was the point of the loser horses discussion? The point of the loser horse discussion was to give us a real life example of when the high-low method is used. The decision to use the high-low method is usually debated between the use of the regression method and the regression method usually wins because of how it has the capability to use a variety of variables to present a more accurate depiction of data. However, the high-low method is preferred when there are only two variables in the data, as such when betting on the loser horses. Horseracing results in one winner, and the rest being losers. Therefore, in theory, the high-low method would work more accurately than the regression method. What are the implications for XBRL for a small, medium and large business? Regardless of the size of a business, XBRL is an excellent tool that allows for companies to have more accessible information. With an enormous data file storage capabilities, XBRL will provide companies
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Unformatted text preview: with the tool to run reports quickly, and as a result, be able to increase efficiency and optimization. However, XBRL is time consuming and costly, larger companies will have more man and fiscal power to implement it first before smaller to medium size companies. In construction and manufacturing, the cost driver in the past was direct labor hours. Now the cost driver has shifted to direct material costs. What is the reason behind this change? Most companies are starting to purchase materials that are already built to a degree resulting in cut labor hours. With labor hours decreasing, it has become less and less a cost factor, while the cost of the direct materials has been increasing its influence as the cost factor. Why are companies doing this? Because they have begun to realize that by buying direct materials they have cut costs related to labor and as a result have driven the total cost of projects down....
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