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What are the drawbacks for a company who does not allocate overhead costs to its products?...

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Finance

What are the drawbacks for a company who does not allocateoverhead costs to its products? Why might a company do this andwhat other controls would they have to implement to insure optimalperformance?

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Some of the drawbacks for a company that does not allocate overhead costs to its products are I the company cannot charge a higher price for the product and recover through the sale    See Answer
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What are the drawbacks for a company who does not allocateoverhead costs to its products? Why might a company do this andwhat other controls would they have to implement to insure optimalperformance?

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