1. What are the three primary reasons of using a standard cost system? In a business that routinely manufactures the same products or performs the same services, why are standards helpful?
Q: Which of the following is an example of a cost item that should be classified as an internal failure…
A: This question deals with the cost of quality or quality cost. Cost of quality means a cost which is…
Q: Each of the following statements is true EXCEPT: Select one: a. traditional product costing systems…
A: Traditional costing system involves allocation of overhead and cost. It is a reactive approach.…
Q: Which of the following statements is false? (You may select more than one answer.)a. Activity-based…
A:
Q: What qualities of a product have an effect on logistical costs? Examine the influence that these…
A: Logistics is one of the vital part of the supply chain management that has direct relations with the…
Q: [4] Product costing provides useful decision-making information in relation to all of the following…
A: Since you have posted multiple questions, we will do the first one for you. To get the remaining…
Q: From the choices presented in parentheses, choose the appropriate termfor completing each of the…
A: Cost accounting is a special branch of accounting in which costs are seen or accounted for.
Q: Why are product costs sometimes called inventoriable costs? Describe the flow of such costs ina…
A: Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare the…
Q: What is a predetermined overhead rate and explain why many companies use it? 2. Many…
A: A predetermined overhead rate:-It is an allocation rate that is applied to the estimated cost of…
Q: Which one of the following is not a cost element in manufacturing a product? Office salaries…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: 1. Explain the role of activity drivers in assigning costs to products.
A: Hi student Since there are multiple questions, we will answer only first question.
Q: 2. What are the key reasons for product cost differences between simple costing systems and ABC…
A: Financial accounting and cost accounting are two significant branches of accounting. Financial…
Q: When refining a costing system, the desire to identify direct costs, is primarily drive by the fact…
A: While refining a costing system the main purpose for direct costs is to identify and classify as…
Q: An important feature of a cost center is that a. It uses only monetary information b. It must be an…
A: Solution: The important function of a cost center is to track costs. The manager of a cost center is…
Q: Which of the following would not be a period cost? Group of answer choices Research and development…
A: Solution: Period cost is the cost that is expensed in the income statement and same is not…
Q: Please explain the statement below (T/F) thoroughly with examples illustrating the answer. "In…
A: in Activity-based costing many numbers of cost pools. In activity-based costing, a product margin…
Q: Which of the following statements regarding service organisations is incorrect? Select one a. Many…
A: Service enterprises means the enterprises which is in the business of providing services like…
Q: Which of the following factors is NOT considered to have influenced the development of…
A: Activity-based costing is a method to allocate the overhead and indirect cost to products and…
Q: Which of the following is false when using ABC in a service industry? analyze operations accumulated…
A: ABC (activity-based costing) seems to be an approach for allocating overhead expenses more…
Q: tandard cost systems provide companies with a number of advantages, argue the statement.
A:
Q: Why is it important to know the true cost for a product or service?
A: True Cost and its importance The meaning of true cost is simple term is the the distinguish between…
Q: What is the difference of price and cost? From (a) point of view of a customer; and (b) point of…
A: For businesses, the term "cost" refers to the expenditure associated with producing a something or…
Q: Identify and describe the three types of product costs in a manufacturing firm.
A: Product cost involves the cost of making a product. These prices include direct labor, direct…
Q: pic is about Cost Accounting. Please check the picture for the problem. Requirement: Determine the…
A: = Sales - purchases of raw materials- opening inventories + closing inventories - direct labor -…
Q: Why would a business that uses traditional costing systems consider implementing activity-based…
A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…
Q: Define cost accounting, what are the two basic types of product costing. Explain any one of them…
A: Cost accounting is that branch of accounting in which the cost to be incurred for the manufacturing,…
Q: Which of the following statements is true? * A. The traditional approach to costing uses many…
A: Cost accounting is one of the branches of accounting. Under this, all costs related to the product…
Q: Identify whether each of the following costs should be classified as product costs or period costs.…
A: Product Costs: Product Costs means the direct costs incurrend for production of a product. Product…
Q: If JIT manufacturing is used and each manufacturing cell produces a single product, which of the…
A: The costs incurred in the manufacturing process can be classified as direct or indirect cost. The…
Q: Classify the following manufacturing costs of Business Solutions as either (a) variable (V) or fixed…
A: Answer: a: Variable cost b: Direct cost
Q: Identifying the benefits of standard costs Setting standards for a product may involve many…
A: Standard costing is very important for a business. This is used to control the costs of the…
Q: Explain why service companies use different activity bases than manufacturing companies to classify…
A: Service companies are those companies which provide services to their clients such as…
Q: Activity Based Costing Give your answers to the following questions; Why do product costing…
A: 1. Product costing system based on single rate of predetermined overhead Manufacturing overhead…
Q: Which of the following is NOT correct about the classifications of costs? Select one: a. On the…
A: Costs in the business can be classified into different types like on the basis of time, on the basis…
Q: Companies can choose from different costing methods: process/product costing and activity-based…
A: Different methods of costing are used in different companies for assigning cost to the manufactured…
Q: a) Calculate the product cost using a Traditional and ABC approach. b) Discuss and analyse…
A: Cost per unit under Traditional costing system: Particulars Product A Product B Product C Product…
Q: Which of the following statements are true? I. Activity-based costing differs from traditional…
A: Activity-based costing (ABC) allocates costs to activities rather than to goods or services. This…
Q: Which of the following statements is true? (You may select more than one answer.)a. Conversion costs…
A:
Q: please differentiate the cost flow in a Service, Merchandising and Manufacturing Business?
A: Merchandise industries are those that produce goods from the goods purchased from other parties.…
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- Which of the following is a possible cause of an unfavorable labor rate variance? A. hiring too many workers B. hiring higher-quality workers at a higher wage C. making too many units D. purchasing too much materialWhich of the following is a possible cause of an unfavorable labor efficiency variance? A. hiring substandard workers B. making too many Units C. buying higher-quality material D. paying too much for workersIf the organization operates at an activity level outside the relevant range, any cost predictions based on data from the relevant range may not be very accurate. True or False?
- The following sentences relate to achieving the financial goal of cost minimization. Which of the following statements is FALSE? a. Prioritizing which costs to incur relates to the operating decisions of the firm only.b. Savings is the end product of this financial goal.c. There is a need to determine cost.d. Controling costs involves addressing unfavorable cost variances.Which of the following is true about the hypothesis test of cost parameters? a) It indicates whether the parameters are different from zero. b) It provides a range of values instead of a single prediction. c) It measures the degree of association between cost and activity output. d) It shows the difference between predicted and actual costs.When using the general methods to estimate cost behavior, A. It is a good idea to use multiple methods so results can be compared B. Managers often apply their own best judgement as a first step in the estimation process C. Results are likely to differ from method to method D. Large differences in methods suggest that the cost cannot be estimated.
- Please explain the answer thoroughly. Is this statement "if all the allocation base in the predetermined overhead rate does not drive overhead costs, it will nevertheless provide reasonably accurate unit product costs because of the averaging process." same as this "If the allocation base does not drive the cost of overhead, overhead cost averaging will yield reasonably accurate unit product costs."? If yes, please let me know if it a true or false with a detailed explanation.Which of the following is not a characteristic of a lean accounting system? Multiple Cholce Costs in the system are organized according to value streams. The system includes both financial and nonfinancial performance indicators. It is most appropriate for firms operating in dynamic and competitive environments. The system incorporates the use of standard costs and standard cost variances. The overall intent of the system is to more accurately reflect improvements associated with lean manufacturing.From the standpoint of cost control, why is the FIFO method superior to the weighted-averagemethod?
- Q.a.Do you agree from the following statements- Explain in details with examples(i) Variable costs are controllable but fixed costs are not. (ii) Sunk costs are irrelevant cost while making any decision. Q. b. Cost Control and Cost Reduction are the two important factors by which Manufacturing companies may increase their Profits. One of the most important tool is the installation of Standard Costing system. But companies have to be very careful while deciding the Proper interpretation of variances from standard is very important for the success of standard costing system as a tool for Cost Control. Mention some important factors that must be born in your mind while interpreting variances.Which of the following statement is true under the Standared Costing System a. Standard cost is a predetermined or estimated cost to either produce a good/service or perform an activity within the organisation b. Standard cost is a control technique that helps to report variances by comparing pre-set standards to actual costs to facilitate action c. Both a and b are incorrect d. Both a and b are correctLancelot Group of Companies would like to estimate its cost function for proper cost management across its business lines. The accountant will.most likely segregate the costs on the basis of • A Degree of averaging into total, average, and unit cost O B. Behavior of cost to changes in activity level to unit and fixed cost • C. Degree of averaging into variable and fixed components O D. Cost-volume relationship into variable and fixed components Reser Selection