Many manufacturers use traditional cost systems to identify the administrative costs for the units producted .. The use of the traditional cost method makes the assumption that the measured volume is a basic control of manufacturing overheads. In this system, accounting for the cost of production delivered with the product. traditional accounting cost allocation nonmanufacturing also involves the production of an item, such as administrative costs. For this reason, the company uses the traditional accounting systems in financial reports from the outside because it provides a value for the cost of goods sold. Although this method is out of date, but this cost system is simple to use, especially for companies that only produce a product
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