Finance Answers

What is the purpose of corporate governance mechanisms and what are the crucial components of corporate governance principles?

Why must directors provide adequate disclosure in financial reporting?

How are internal controls enhanced by the documentation of procedures?

How will a business determine the correct establishment of lodgement schedules?

9. Identify the steps involved in the design and implementation of activity-based
costing systems
11. Explain why activity-based costing systems are being adopted.
12. Explain how just-in-time systems can reduce non-value-added activities

6. Describe the general approach to allocating costs to products or services.
7. Use the physical units and relative-sales-value methods to allocate joint costs to products.

Explain the relationship between activities, resources, costs, and cost drivers.
3. Use recommended guidelines to charge the variable and fixed costs of service
departments to other organizational units.
4. Identify methods for allocating the central costs of an organization

If inventory levels are rising but the sales are not, what might this indicate and why might this be a concern?

Part way through the production process it is discovered that the cost assignment was inaccurate for product A and that there has been an underestimation of $150 per unit. They are unable to change the pricing because of contractual obligations.

What is the impact of this error in cost assignment if sales were as predicted?

What is the impact on income when the actual sales figures are used?

How might the materiality threshold level set for negative deviations differ between a small and large business?


Why are the variances from budgets and forecasts important to know?