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. In my opinion, the cost of paperwork and recordkeeping in the Conley system is less. Because the Conley system uses standard costs for direct material, direct labor, and overhead, the amount of paperwork and recordkeeping decreases all the individual material requisitions for a month can be totaled and posted as a single credit to Materials Inventory. Also, the Conley system records the same costs for physically identical unit of a product whereas the Bennett system (an actual cost-based system) may record different costs for physically identical units. Furthermore, there is no need for workers to keep track of the time they spend on individual batches in the Conley system. All that is needed is one predetermined standard direct labor cost.
2. One of the reasons could be bad estimation of volume based on demand for a given year. Another reason could be how cost centers are defined. Is a machine a cost center by itself? Another reason when concerned about the accuracy of cost could be the choice of an activity measure the amount of overhead allocated to a product is affected by the measure of volume used in the overhead rate..