https://padlet.com/karen_mcfarlane/833aka3rlpua en-us 2016-11-23 10:22:52 UTC 2026-02-26 17:04:55 UTC hello@padlet.com pmzungu15 https://padlet.com/karen_mcfarlane/833aka3rlpua/wish/142980615 In full costing, in one of the lectures, you used sales as a basis of allocating resources to different departments. My question, if a one department's product for example has a lower price elasticity than all other departments and the business charges a high price but sales lower quantity than all other departments but still because of the high price, manages to gain more sales. So with this method, the more expenses will be charged to this department despite them using fewer resources than the other departments. My questions how can we divide expenses to taking into account, the different prices?]]> 2016-12-11 10:18:43 UTC https://padlet.com/karen_mcfarlane/833aka3rlpua/wish/142980615 karen_mcfarlane https://padlet.com/karen_mcfarlane/833aka3rlpua/wish/143307581 The example used sales as a measure of sharing overheads as it represented volume of business operations. Obviously the overheads may be affected more by physical volume than the sales value which affected not only by volume but also sales price. So therefore as you point out there are weaknesses in using sales value as they are impacted by sales prices which are highly unlikely to have any relationship to overheads.]]> 2016-12-13 09:56:20 UTC https://padlet.com/karen_mcfarlane/833aka3rlpua/wish/143307581