This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Other Function of expense method Focuses on the nature of the activity that the expense relates to (i.e. production, distribution, etc.) Presents the cost of sales and gross margin may evaluate performance May evaluate each activity separately if expenses are out of control in one activity (i.e. administration), may be more easily brought under control. Useful in predicting cash flows Other...
View Full Document
- Spring '10