5) Choosing to outsource a component of a product or manufacture it internally is an example of a(n): A. Opportunity cost. B. Sunk cost. C. Out-of-pocket cost. D. Period cost. F. Fixed cost

Q: Product costs are also called Select one: O a. Indirect material costs. O b. Indirect Labor costs. O…

A: Cost are basically divided between two category: 1. Product Costs 2. Period costs

Q: When making outsourcing decisions, which of the following is true? a. Expected use of the freed…

A: When making decision on make or buy decision or which are otherwise called as Outsourcing decisions,…

Q: In a manufacturing company using absorption costing, the fixed costs associated with idle production…

A: The question is related to the Absorption costing.

Q: What is the basic difference between absorption costing and variable costing?   What are the…

A: Product costs are those kinds of costs which is related to the procedure of production directly like…

Q: Which of the following is an example of an indirect cost? Multiple Choice Cost of labor Cost of…

A: Indirect Cost are expenses other than direct expenses are known as indirect  expenses. These cannot…

Q: The reason for some costs to be mixed in nature is? A. Presence of sunk cost in the cost structure.…

A: Fixed costs are those costs which do not change with change in level of activity like Rent Expense…

Q: Management Accounting) If fixed production costs are not allocated to manufactured products, this…

A: SOLUTION FIXED COST INCLUDES THE RENT OR MORTGAGE PAYMENT YOU PAY FOR YOUR FACTORY AND OFFICE…

Q: The amount of increase or decrease in cost that is expected from a particular course of action as…

A: Discretionary cost: A discretionary expense is a cost that a business or household can survive…

Q: Are selling and administrative expenses treated as product costs or as period costs under variable…

A: Selling and administrative expenses:   These expenses incurred by the company does not relate to the…

Q: Which of the following statements is true of activity-based costing? O a. Activities are the cost…

A: Activity based costing is a type of costing system in which all indirect costs or overhead costs are…

Q: Which one of the following is not correct about variable costing systems? Select one: O a. Focuses…

A: Variable costing: Under this method refers to the cost technique under which only variable costs are…

Q: nder variable costing, which of the following costs are treated as period costs?

A: Variable costing:- It is a concept used in cost and managerial  accounting. In which the fixed…

Q: When pricing a product or service, managers must consider which of the following? Only period costs…

A: Pricing a product is considered as one of the marketing strategy.

Q: Which of these costs is considered as the most important cost because if it is not met, an…

A: A company income statement will report the net income as the total revenue in excess of the total…

Q: An allocation base! O a. is a measure used to assign prime costs to products and services O b.…

A: An allocation base is the basis on which Cost accounting allocates overhead costs.  An allocation…

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: In a drop or continue decision, only the variable costs identified with a product are relevant in a…

A: The given statement is true.

Q: What are these equations? c.Under absorption costing, what is the cost of goods sold? d.Under…

A: Hey, since there are multiple subparts posted, we will answer the first three subparts. If you want…

Q: Which TWO of the following statements about activity-based costing (ABC) are true? a. Implementation…

A: Activity-based costing suitable when: A variety of products are created Overhead accounts for a…

Q: Which of the following is not a step involved in activity-based costing? Select one O a Compute a…

A: Activity-based costing: It is a method that helps in finding the activities performed by a company…

Q: What is the reason for pooling costs? O a. To shift costs from low-volume to high-volume products. O…

A: Cost mean different expenses incurred by the manufacturing concern to make a product available to…

Q: In CVP Analysis, total costs are defined as costs derived from product costs and period costs. TRUE…

A: Cost-volume-profit analysis is used to determine how the company's profit has been affected due to…

Q: What is the high-low method used to estimate? a. variable costs and production capacity b. total…

A: The high-low method is a method using which the variable cost per unit and total fixed cost is…

Q: In making short-term business decisions, what should you do? a. Use a traditional costing approach.…

A: Business decision refers to large part of conducting business is making decisions.

Q: In Make or buy decision ,irrelevant costs are :  Select one: a. manufacturing costs that will be…

A: Under make or buy decision, decision needs to taken whether we should manufacture the product or…

Q: Marginal Costing refers to product costing methods that exclude ________ from product costs a)…

A: Using marginal costing, only variable costs are included in product cost.

Q: A price that can't be quickly or efficiently linked to a cost object is referred to as: Additional…

A: The costs that are easily tracked to the product are known as the traceable costs. Special domestic…

Q: . Which of the following is the best definition of a variable cost? A. A variable cost is one which…

A: Variable costs are the costs that vary on the basis of the level of output. They are determined per…

Q: 1-Why is it important to distinguish cost incurrence from locked-in cost? 2- How do companies…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following statements is true? (You may select more than one answer.)a. A common cost is…

A: Opportunity cost is the value of the next best alternative over the selected alternative.The loss of…

Q: he distinction between indirect and direct costs depends on: Select one: a. whether a cost differs…

A: Direct cost means the cost which can be related with the production of specific goods directly like…

Q: A mixed cost contains: a variable element and a fixed element. both selling and administrative…

A: Mixed costs are that cost which contain a portion of both fixed and variable costs. Common examples…

Q: tatement is true or false, and correct the false tatement(s): Manufacturing cost is called period…

A: Manufacturing cost is the cost incurred to manufacture units . It includes direct material , direct…

Q: 6- Absorption costing makes an apportionment of indirect costs so that the products absorb these…

A: There are two types of costing methods that are being used in cost accounting. One is absorption…

Q: 1. Select two decisions-one common to a manufacturer and the other common to a service…

A: Manufacturing Entity: A manufacturing business is defined as any firm that manufactures completed…

Q: Which of the following is FALSE regarding Variable Costing? A. Net income will only change if the…

A: Variable costing is a cost concept in managerial accounting. In Variable costing, all variable costs…

Q: Marginal costing is a technique that distinguishes between variable costs and fixed costs. In this…

A: Cost-volume-profit (CVP) analysis is an important and systematic method that provides useful…

Q: If fixed manufacturing overhead costs are released from inventory under absorption costing, what…

A: Overhead Costs: Overhead costs are business expenses that cannot be associated or traced directly…

Q: Which of the following is NOT a reason for companies to assign costs to products or services? O to…

A: Generally companies will asign costs to products and services for decision making purpose

Q: 1. The amount of increase or decrease in revenue that is expected from a particular course of action…

A: Differential costing is a technique where differential costs are considered relevant. Differential…

Q: Which of the following is a correct statement? OA the fixed manufacturing cost is based on a per…

A: Fixed manufacturing cost is a fixed overhead cost. Under Variable Costing, fixed overhead cost is…

Q: uantity order to reduce the overall cost is usually stated as EOQ. why it is related to one time…

A: Step 1   Economic order quantity (EOQ) is the ideal order quantity a company should purchase to…

Q: Costs that will differ between alternatives and influence the outcome of a decision ar Select one: O…

A: Relevant costs are the managerial costs that are incurred only to make specific business decisions.…

Q: 1. What would the manufacturing cost per unit be under absorption costing? 2. What would the…

A: C Division of White Company 1 Calculation of manufacturing cost per unit using Absorption Costing:…

Q: When pricing a product or service, managers must consider which of the following? a. Only period…

A:

Q: Indirect cost is the cost that cannot be directly attributed to the production as these costs are…

A: Cost is the amount incurred in the regular course of the business. It may be direct or indirect.

Q: Consider the following statements concerning costs.        1. A committed cost cannot vary with the…

A: Committed costs are costs that are committed or fixed to be incurred in future period of time.…