Question

Why is it important for a company to estimate cost? What are the potential outcomes if...

Why is it important for a company to estimate cost? What are the potential outcomes if a company inaccurately calculates the cost of a product?​

Homework Answers

Answer #1

Answer)

It is important to estimate cost earlier to make for the amount of finance getting ready required to carry the operations.

Thepotential outcomes if a company inaccurately calculated the cost of a product is:

1)The Actuals may exceed the Budget by great extent which may lead to need of additional funds which may lead to aquiring of funds for greater cost due to timelessness.

2)Fixing of selling price at less magin than intended may happen which can lead to loss or inadequate profits.

3)Wrong presentation in financial statements like showing more profits or losses and providing wrong details in balance sheets.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Do you value service outcomes, medical outcomes, other.... and why...what is most important to you?
Do you value service outcomes, medical outcomes, other.... and why...what is most important to you?
Explain why the use of debt by a firm nessitates an estimate of the cost of...
Explain why the use of debt by a firm nessitates an estimate of the cost of equity and the cost of debt and why the beta of a company is a function of a number; identify the most important three factors in priority order
What is cost of capital and why it is important?
What is cost of capital and why it is important?
What is culture? Why is culture important to an organization related to change? Why is it...
What is culture? Why is culture important to an organization related to change? Why is it important to monitor and control the outcomes of the organizations change initiatives/strategy?
What is a standard cost card, and why is it important
What is a standard cost card, and why is it important
What is Direct Material Cost and why is it important?
What is Direct Material Cost and why is it important?
What is Direct Labor Cost and why is it important?
What is Direct Labor Cost and why is it important?
What is the Weighted Average Cost of Capital, and why is it important?
What is the Weighted Average Cost of Capital, and why is it important?
What is cost behavior analysis and why is it important to management?
What is cost behavior analysis and why is it important to management?
Why is the cost of healthcare in the US more expensive, but healthcare outcomes are poorer?
Why is the cost of healthcare in the US more expensive, but healthcare outcomes are poorer?