Seminar-Assessment-explain-what-is-meant-by-the-Death-Spiral-business-and-finance-homework-help
LP2 Seminar Assessment
https://www.youtube.com/watch?v=NLbBumW58sM
1. In your own words, explain what is meant by the “Death Spiralâ€
2. Exhibit 4-22 (attached) shows the job cost sheet for the Strict Custom Framing company.
a. Explain why shipping is included in direct cost and
b. Usually, Materials is considered a direct expense. Explain why there are only 2 categories: Direct and Conversion.
3. ABC is clearly a more complex cost allocation system than the traditional cost accounting system. If you were a consultant to a company that has in place a traditional labor-hours driven cost accounting system,
(a) Identify why a company might resist implementing an ABC system and
(b) Suggest one way to overcome the resistance