Which of following is a disadvantage of outsourcing

Q: Give three examples of opportunity costs that typically are not recorded in accounting systems,…

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Q: Which of the following costs is NOT RELEVANT?

A: It is pertinent to note that managerial accounting mainly concentrates on decision making  Inorder…

Q: Which method separating mixed cost is most accurate? Provide reasons for your answer based  on the…

A: Cost under accounting can be of two types i.e. fixed cost and variable cost. The accosting records…

Q: explain how sunk costs create a barrier to entry into the market place.

A: Sunk costs are expenses that can not be retrieved if a corporation wishes to leave a market.

Q: Which of the following is not a criticism of using ROI as the only performance measure?

A: ROI stands for Return on investment that shows the return earned by the company on the capital…

Q: Explain whether the following statements are valid or not valid: A. Target costing ignores non-value…

A: Target costing is an costing technique in which it was the difference between targeted sales minus…

Q: Why can full cost accounting lead to wrong management decisions?

A: Full cost accounting says that total costs of the product either it is fixed costs or it is variable…

Q: State and explain whether the following statements are valid or not valid: A. Target costing…

A: Target costing is a costing management method where it is the difference between targeted sales…

Q: What are the disadvantages of a Double Entry System?

A: Double entry system is a method of keeping records of transaction in the books of accounts, where…

Q: What are the two shortcomings of the direct write-off method?

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Q: Define the term make-or-buy (or outsourcing) analysis?

A: Make or buy: purchasing of goods from the outside vendors is called outsourcing.

Q: Why does the high cost of the system negatively impact the organization's bottom line?

A: The question is based on the concept of bottom line of a company and its relationship with high cost

Q: lower-of-cost-or-market approach,

A: It is pertinent to note that inventory need to be valued at cost of net realizable value whichever…

Q: As a result of cost distortion, some products will be overcosted while other products will be…

A: Solution: Cost distortions occurs when the overhead costs are not properly allocated,  when the…

Q: A possible disadvantage of the ABC method is: (a) It does not allocate costs to the way production…

A: Definition:   Activity-based method (ABC): The costing method which allocates overheads to the…

Q: Explain why all costs are controllable by someone at some time but in the short run some costs may…

A: Cost accounting: The process of identifying, calculating and recording the cost related to the…

Q: Which of the following is a disadvantage of outsourcing? Group of answer choices A. freeing up…

A: A very common outsourcing scenario is the decision of a company to produce a component that is…

Q: Why should managers worry about product overcosting or undercosting?

A: A product is said to be over costing when it consumes low level of resources but is reported to have…

Q: Identify and explain one major disadvantage of incorporating.

A: Incorporating is a legal and systematic method for the formation of a separate business entity for…

Q: Why can unitized fixed costs cause errors in decision making?

A: Decision making process: Decision making process requires an understanding of a grasp of illegal…

Q: Why is reduce inventory cost is an advantage of inventory outsourcing?

A: Inventory is defined as the goods as well as materials, which has the business holding for an…

Q: Describe dropping unprofitable products or segments.

A: Dropping unprofitable products or segments means discontinue a particular product or segment which…

Q: Why is there often a conflict between the performance evaluation and cost-minimization objectives of…

A: SOLUTION- TRANSFER PRICING   IS THE ACCOUNTING PRACTICE THAT REPRESENTS THE PRICE THAT ONE DIVISION…

Q: What is the major disadvantage of the high-low method?

A: High-low method: High-low method is a method of calculating the variable cost and the fixed cost of…

Q: Understand and apply the lower-of-cost-or-market rule.

A: Cost: It is the economic value incurred by an organization to produce a product or render a service.

Q: Cite a specific example of non-value added activity that can be eliminated in a particular industry.…

A: NVA activities are tasks that do not add to the shape or function of the market. Filing, copying,…

Q: Why do product costing systems using a single, volume-based cost driver tend to overcost highvolume…

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With…

Q: Explain why sunk costs are not considered in the analysis ofinvestment alternatives.

A: A sunk cost is also known as the retrospective cost, is a cost that cannot be recovered because it…

Q: What are the disadvantages and advantages of Analysis at the account level technique

A: Analysis at the account level: It is the method of accounting where the financial transaction's…

Q: Define competitive disadvantage costs.

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Q: Why runaway gap (technical analysis) occur? Explain.

A: Introduction : The mentality underlying a runaway gap would be that dealers who missed the initial…

Q: Which of the following is not an advantageous reason to reduce inventories? a. Inventories provide a…

A: Inventories are the stocks of finished goods which are purchased, utilized as well as maintained by…

Q: From the standpoint of cost control, why is the FIFO method superior to the weighted-averagemethod?

A: First-In-First-Out (FIFO) Method:   It is a method of managing inventory of an organization. Under a…

Q: . What factors determine the relevance of information to decision making? 2. What are sunk costs,…

A: Majorly decision-making managers have to consider the relevant information which is associated with…

Q: Critics of absorption costing have increasingly emphasized its potential for leading to undesirable…

A: Absorption Costing: The absorption costing is a method used to allocate the fixed manufacturing…

Q: Briefly discuss how differentiated products in a monopolistic competitive framework can arise.

A: It is the primary characteristic of the monopolistic competition that there is product distinction.…

Q: Explain how IT outsourcing can lead to loss of strategic advantage.

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Q: What are the disadvantages of outsourcing? (BUY)

A: Outsourcing: Outsourcing refers to hiring another company, to undertake a business process of the…