Presence of a predisposing condition - Predisposing conditions include peptic ulcer disease, acute appendicitis, acute diverticulitis, and inflamed Meckel diverticulum. Indeed, acute appendicitis is still one of the common causes of bowel perforation in elderly patients and is associated with relatively poor outcomes.
(2) Two-Stage Allocation: It can be observed that both the costing systems follow a two stage allocation procedure. In traditional costing, in the first stage, overhead costs are allocated to production departments. But in ABC, in the first stage, overhead costs are assigned to each major activity and not to departments.
Expense Versus Expenditure. An expenditure is a payment, while an expense is a cost that is reported on the profit-and-loss statement. Sometimes the expense can be the same thing as the expenditure. For example, salaries are expenditures that are expenses as well. In other cases, they are completely different.dministrative and operational expenses are subtracted from the gross margin, as is depreciation, to arrive at operating income. A capital expenditure is not treated as a revenue expenditure on the income statement or the balance sheet.