costacctg13_sm_ch05

Managersshouldexaminetheuseofthesetwoactivit

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Unformatted text preview: 95 $0.85 20,040 1.20 34,235 2.05 Total (7) $ 58,070 69,465 127,535 3,306 3,654 4,680 0.64 0.70 0.90 1,140 1,260 3,000 0.15 0.17 0.40 1,254 1,386 3,006 0.08 0.08 0.18 5,700 6,300 10,386 2,520 3,780 3,120 0.48 0.73 0.60 3,320 4,980 4,500 0.44 0.67 0.60 3,360 5,040 3,340 0.20 0.30 0.20 9,200 13,800 10,960 3,960 3,240 4,680 $79,740 0.76 0.62 0.90 $15.33 4,950 4,050 2,250 $75,950 0.66 0.54 0.30 $10.13 9,405 7,695 2,004 $70,725 0.56 0.46 0.12 $4.23 18,315 14,985 8,934 $226,115 5­30 4. Disaggregated informat ion can improve decisio ns by allo wing managers to see the details which helps them understand how different aspects of cost influence total cost per unit. Managers can also understand the dr ivers o f different cost categories and use this informat ion for pricing and product­mix decis io ns, cost reduction and process­improvement decisio ns, desig n decisio ns, and to plan and manage act ivit ies. However, too much detail can overload managers who don’t understand the data or what it means. Also, managers looking at per unit data may be misled when considering...
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This note was uploaded on 10/11/2010 for the course ACCT 321 taught by Professor Cole during the Spring '10 term at University of Miami.

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