Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed

To provide information for economic decisions 2

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solutions-manual-to-bhimani-et-al-management-and-cost-accounting-pearson-2012-1

1
To provide information for economic decisions
2
To motivate managers and employees
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To justify costs or calculate reimbursement
4
To measure income and assets for meeting external regulatory and legal reporting obligations.
5.4
Cost–benefit considerations can affect costing choices in several ways
a
Classifying some immaterial costs as indirect when they could, at high cost, be traced to products, services or customers as direct costs.
b
Using a small number of indirect-cost pools when, at high cost, an increased number of indirect-cost pools would provide more homogeneous cost pools.

Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012
c
Using allocation bases that are readily available (or can be collected at low cost) when, at high cost, more appropriate cost-allocation bases could be developed.

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