Limitations of Marginal Costing
Write down the limitations of Marginal Costing?
Expert
Limitations of Marginal Costing are illustrated below: - The categorization of total costs into variable and fixed cost is hard. - In this method fixed costs are completely eliminated for the valuation of inventory of finished and semi-finished goods. Such removal affects the profitability adversely.
- In marginal costing historical data is employed while management decisions are related to prospect events. - It doesn’t give any standard for the valuation of performance. - Selling price fixed on the base of marginal cost will be useful only for short period. - Estimation of profitability on the marginal cost base can be employed only in the short period.
As per most conventional theories of the labor market, the: (w) supply curve of labor is positively sloped since higher wages attract additional workers in the labor market. (x) firms should contend with increasing returns from additional employment.
A cartel tends to be more successful mainly while this can stop: (1) cheating between its members. (2) increases in the demand for its product. (3) joint profit maximization. (4) international trade. (5) an increase in the price of its product. <
Increasing the wage from $9 to $15 will cause Plastibristle’s total hourly wage payments to: (w) rise by about $900. (x) rise by about $1500. (y) fall by about $900. (z) fall by about $1500. <
Val Alvarado, an accountant, quit his $80,000 year job and bought an existing laundry through its earlier owner, he was Ricky White. The lease has five years stayed and needs a monthly payment of $4,000. Val's explicit cost amounts to $3,000 per month more than his
When the income effect of a wage raise is more powerful than the substitution effect, in that case the: (i) labor supply curve will be “backward bending.” (ii) unemployment rate will rise since more people will be av
What are the advantages and disadvantages of survey techniques?
Signaling: (w) attempts to finesse adverse selection. (x) involves behavior by agents to communicate special qualifications which will elicit the offer of a contract from a principal. (y) refers to potential employees obtaining skills, education or ex
What are the Environmental or external issues of managerial economics?
Explain the Opinion Survey method of Demand Forecasting.
Illustrates the Demand function of a commodity?
18,76,764
1956015 Asked
3,689
Active Tutors
1416695
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!