This is a flat 4000 per month utilities and other

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: then the cost on which the price is based comes closer to the true consumption of resources needed for each job. As a result, the multi-cost-center approach helps to eliminate the cross subsidization that takes place in the one-cost-center approach. ____________________________________________________________________________________________________________ David W. Young • Management Accounting for Managers • Chapter 1 Page 20 Copyrighted Material. Do not reproduce without written permission. SUMMARY OF COST ACCOUNTING CHOICES As the discussion in this chapter has indicated, the managerial choices involved in developing a cost accounting system frequently are quite difficult. Moreover, they are highly interdependent. The choice of cost centers will influence the distinction between direct and indirect costs. The choice of a particular final cost object frequently will require the use of certain intermediate cost objects, or call for certain kinds of cost centers. Allocation of service center costs will be d...
View Full Document

This document was uploaded on 03/30/2014.

Ask a homework question - tutors are online