Discuss the criticisms of traditional cost accounting methods
What will be an ideal response?
Answer: There can be an inappropriate allocation of overhead costs. The factors contributing to this problem are: A volume-driven form used for activity-driven overhead costs assigned to products. Overhead cost is either over- or understated due to allocation method used. The system may distort costs across products, especially if manufacturing is highly automated and performance measures do not accurately reflect the effects of factory automation: Measures collected are not integrated with performance measures. Lack of information about standard costs, variance, and functioning of production process. Lack of information about defect rates, breakdown frequency, percentage for finished goods completed without rework, etc.
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Sample size is influenced by which of the following?
A) confidence level changes B) population variability C) precision level changes D) A and B E) A, B, and C
An organic farmer has identified three distinct groups who might be interested in his products: vegetarians, people who are concerned about chemicals in their foods, and people who consider themselves innovators and trendsetters
These three groups are examples of ________. A) marketing mixes B) market segments C) product mixes D) mass markets E) market positions