Knowing how costs behave to change in the level of activity is useful to management for all the following reasons except for: predicting customer demand.   predicting profits as sales and production volumes change.   estimating costs.   changing an existing product production.

Q: Winters, Inc. is preparing financial statements to be distributed to investors and creditors. The…

A: Absorption costing: In absorption costing company considers both fixed and variable Manufacturing…

Q: g the revenue per employee ratio as an indicator for productivity will lead to outsourcing of…

A: Revenue per employee is one of most important consideration for large companies.

Q: Which of the following statements is false? (You may select more than one answer.)a. Activity-based…

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Q: 1. "Cost accounting is a form of managerial accounting that aims to capture a company's total cost…

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

Q: Which of the following is not a true statement about variable costs? O a. Total cost is known to…

A: Variable Cost Variable cost which is described as the cost which are incurred to the business entity…

Q: ent should focus its sales and production efforts on the product or products that will provide the…

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Q: When deciding whether to sell as is or process a product further, managers should ignore which of…

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Q: The objective of management, under absorption costing, is that each product recovers its full cost…

A: Absorption costing is the method used by the managers to determine the cost connected with the…

Q: I'm having trouble determining the profitability of the firm's information systems services and…

A: Activity based costing is a method and type of costing, in which all indirect costs and indirect…

Q: In a manufacturing setting, "the best short-term profit maximization approach is to maximize…

A: In the short run, fixed costs are constant. Therefore, to maximize the profit, the contribution per…

Q: Which of the following major activities of a business will result in product costs? Multiple Choice…

A: The costs that can be directly attributable to the produced goods are called product costs.

Q: How would you recommend stabilizing the company's unit product cost?

A: Unit cost of a product is determined by dividing the total cost of the units produced by the total…

Q: Activity-based costing tends to pass the cost-benefit test for companies with  A. Operations that…

A: Activity based costing is a type of costing system in which costs are assigned or allocated to all…

Q: Which of the following is NOT a problem associated with standard cost accounting? a. Standard…

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Q: Cost calculation

A: Cost is the amount incurred in production of product, carrying out a process, conduct of sales or…

Q: Synthesized data to explain the concept of ROI, how the use of an activity-based costing system can…

A: Ratio analysis is a tool used by the financial analyst to measure the financial performance of the…

Q: he following sentences relate to achieving the financial goal of cost minimization. Which of the…

A: Cost minimization is a concept by which producers try to figure out how costs should be reduced.…

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: t is known that a new fee will increase if the order made by the customer increases. Based on this…

A: Under ABC system, the costs are divided on the grounds of various types of cost drivers utilized.…

Q: Why do managers need to know the cost of their products?

A: Job order costing: Job order costing is one of the methods of cost accounting under which cost is…

Q: Why might relevant costs analysis be bad for a company if used too frequently?   Multiple Choice…

A: Introduction: In managerial accounting, avoidable expenses that are only incurred in conjunction…

Q: When deciding whether to sell as is or process a product further, managers should ignore which of…

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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: 1- What potential problems should be avoided in relevant-cost analysis?

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

Q: "Simplification of all costs into only fixed and variable costs distorts the actual cost behavior…

A: Introduction:- There are four basic cost behavior patterns as follows:- fixed costs variable costs…

Q: Prepare a report from Mary Jane to Don explaining how these changes will affect Mirabel’s overall…

A: The changes whether in sales price or the costs which are associated with the manufacturing of…

Q: Customer Response Time includes Manufacturing Cycle Time. Manufacturing Time or Process Time is…

A: Customer Response Time=Manufacturing cycle time+Receipt time+Delivery time

Q: What is meant by customer-profitability analysis? Give an example of an activity that might be…

A: Customer Profitability Analysis:  It is the process of ascertaining the amount of revenue earned…

Q: The objective of management, under absorption costing, is that each product recovers its full cost…

A: The management is interested in that product which is giving profit in return on investment.it means…

Q: In detail discuss what are  the advantages and disadvantages of using FIFO for process costing. In…

A: First-in First-out(FIFO) method under process costing is based on the assumption that at the…

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

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

Q: How would you define fixed and variable product costs? How are these costs used in determining the…

A: Cost of production is the total cost involved in producing a particular volume of products. These…

Q: In Classification Of Cost, What Is A Business Situational Example of the ff:

A: Cost refers to the amount spent by the business on the purchase of raw materials, supplies,…

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: Explain why a new product costing system may be needed when line managers suggest that an apparently…

A: Product Costing System:-It is a framework that is used to determine the cost of the product for…

Q: 2. Management felt that because the data revealed some customers require a disproportionate share of…

A: Activity based costing is the allocation of overhead cost on the basis of the most appropriate cost…

Q: Describe the differences in behavior of fixed costs, variable costs, semi-variable costs and step…

A: Fixed costs are fixed in nature, it doesn't vary with the change in units. The total fixed cost will…

Q: 1. What is the primary trade-off an accountant must consider when deciding whether to identify cost…

A: Answer 1: Is the cost/benefit of the process reasonable for more accurate behavior obtained.