The advantages of using weighted average cost is that it is consistent, the formula is very simple to use and their is less paperwork. This method, however, makes it difficult to follow the ups and downs of the market if prices change frequently.
the disadvantages of cost classification
cost accounting advantage & disadvantage
Weighted Average
There are a number of advantages and disadvantages to the fair trade system. Advantages include fair wages, a higher profit, and safer working conditions. Disadvantages of fair trade include the cost of certification and the favoring of co-ops over individuals.
weighted average
the disadvantages of cost classification
the disadvantages of cost classification
One limitation of the weighted average cost of capital is that a firm may possibly end up having a negative Net Present value. This occurs if the weighted average cost of capital gives a discount rate that is too low.
cost of capital advantages
advantages of cost management in relation to finacial efficiency
It must be the managers
Weighted average cost of capital.
cost accounting advantage & disadvantage
It has all the advantages from cost efficient to speed efficiency. Disadvantages? Power dependent.
The weighted average method is advantageous because it smoothens out fluctuations in inventory costs by incorporating both old and new cost data. It is simple to calculate and less subject to distortions from extreme price changes. This method is also compliant with generally accepted accounting principles (GAAP).
Weighted average contribution margin is the weighted amount of contribution margin generated by all units of different mix of products to recover the total fixed cost of company.
advantages: enhances the accountability in HR operation improves visibility in the performance disadvantages: not cost effective innacurate