What are the benefits of Activity-based costing: a.All of the answers are correct b.It assists in justifying equipment purchases or improvements c.It is more credible than traditional costing d.It helps to improve responsibility reporting

What are the benefits of Activity-based costing: a.All of the answers are correct b.It assists in justifying equipment purchases or improvements c.It is more credible than traditional costing d.It helps to improve responsibility reporting

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 12MC: Which statement is correct? A. Activity-based cost systems are less costly than traditional cost...

See similar textbooks

Related questions

Q: Bourne Company provided the following selected transactions related to contingencies. The fiscal yea...

Q: Jared Manufacturing Company provides you with the following information: Materials in Process 2 are...

A: FIFO stands for First In First Out which means units started first are consumed/finished first.

Q: Bert Baker and Ernestine Moffet were never formally married but have lived together as husband and w...

A: Introduction:- Bert Baker and Ernestine Moffet have been living together as husband and wife for the...

Q: on sells products for $43 each that have variab ual fixed cost is $638,000. ontribution margin appro...

A: Breakeven point is where the fixed cost equals the contribution margin . At breakeven point there is...

Q: what are the possible violation of financial reporting protocols ?

A: Financial Statements: Financial statements are formal records of the monetary activities and positio...

Q: 2 Purchased $5,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated A...

A: The journal entries are prepared to record day to day transactions of the business.

Q: Accounting Equation d. -On November 15, 2010, Ripped agreed to give twelve seminars on proper liftin...

A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.

Q: pasia invested 300k for a 15% interest in the partnership that has total capital of 2.5m after his a...

A: In partnership, if cash invested by new partner is more than his capital interest, then difference i...

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $50 million ...

A: Solution 1: Payne Industries Journal Entries Event Particulars Debit (In Million) Credit (In ...

Q: Mary is considering opening a hobby and craft store. Mary plans to operate the business for six year...

A: Present value refers to the current value of an amount that is receivable in the future.

Q: X Corp has $200,000 of gross receipts from sales, $300,000 of operating expenses, and $150,000 of di...

A: Dividend received from less than 20% owned domestic corporations per TCJA is 50% DRD. Exception case...

Q: Statement 1: Any loss acquired when the costs related to processing, storing, and disposing of by-pr...

A: Let us first understand what are by products. By products are something that is incidental to the pr...

Q: Chemi Co. produces chemicals Koo and Lam and incident to their production recovers a by-product, Boo...

A: Net realizable value = Total market value - Further process costs Total costs to be allocated = Tota...

Q: How fill IRS Form 1120 Corporations with this info: (it's a fake company) For learning purposes only...

A: The answer for the above question is given in the following steps for your reference.

Q: During the month of June, Job 100 was started. Data are as follows: Units produced is 1,200 units; U...

A: Gross margin is computed using formula = Sales revenue - Cost of goods sold Where Sales revenue = Re...

Q: Explain why people commit fraud. 2. What are the various types of fraud?

A: Fraud is any intentional act done to obtain illegal or unjust advantage by employees, management, th...

Q: rember 20X3. Detailed pla roved by the board at this ne current status of each of th

A: the most acceptable accounting treatment of the higher than call within the budget of CLH for the ye...

Q: Sunland Inc. reported income from continuing operations before taxes during 2017 of $817,900. Additi...

A: The question is based on the concept of Financial Accounting.

Q: You are 20 years old. You want to retire at age 65 (45 years) with $1,000,000. You can invest your m...

A: Future value required (FV) = $1,000,000 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50%...

Q: ☐ May 4 – Hazel purchased an advertisement in the local newspaper which also ran online. The ad cos...

A: A journal entry is a form of accounting entry that is used to report a business transaction in a com...

Q: Trial Balance to be correced Account Titles Debit Credit Cash in Bank 25,000 Accounts Receivable 20,...

A: In trial balance Assets, Expenses and Drawings are debit balance account while Capital, Liabilities ...

Q: The following income statement was drawn from the records of Munoz, a merchandising firm: MUNOZ COMP...

A: Contribution Margin = Sales - Variable Costs Net Income = Contribution margin - Fixed costs Operatin...

Q: Financial audit Q&A What is the file type of the customer confirmation that is related to the outsta...

Q: Crazy Coconut LLC has two products: Jet Boats Ski Boats $8000 $24,000 $4800 $14,000 Sales price per ...

Q: What is an example of a like-kind exchange? Exchange of a computer server for two personal compu...

A: Like kind exchange is a form of exchange between two parties which is a tax deferred transaction and...

Q: The standard quantity allowed for the units produced was 4,500 pounds, the standard price was P2.50 ...

A: The variance is the difference between the actual data and standard output of the production.

Q: Use the following end-of-period spreadsheet to answer the question that follow. Finley Company End-...

A: Closing entries are made at the end of an accounting period. These entries are made to close the tem...

Q: has a net payroll amount of $5,064.50. What is the correct journal entry to record this payment on p...

A: Summary of the information provided in the question : Net payroll amount : $ 5,064.50 Requiremen...

Q: How would any unanticipated fluctuations in my portfolio value affect my investment policy

A: Investment- An investment is an asset or item acquired with the aim of generating revenue or approva...

Q: Assignment Question(s): Marks 10 1.Complete the following table. (2 Marks) Output Total Fixed Cost T...

A: Total Cost = Variable Cost + Fixed Cost The total variable cost will vary as per the output where as...

Q: The total cost assigned to job 777C is P24,000 which includes direct materials cost of P6,000. The f...

A: Total cost = P24000 Material cost = P6000 Labor and overhead cost = 24000-6000 = P18000 Labor cost =...

Q: GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year Prior Year ...

A: Lets understand the basics. Common size income statement is a statement which shows the comparison o...

Q: Perform the vertical Financial Statement Analysis of Income Statement

A: Vertical analysis of financial statements shows all items of income statement as a percentage of net...

Q: PE 2. Baler Company has annual sales of P2.5M with variable expenses of 60 percent of sales and fixe...

A: Contribution margin ratio = 100 - Variable costs % Annual sales required for target profit = Annual ...

Q: Carryon Company sells a product and a 12-month service package for that for a combined price of $810...

A: Deferred Revenue: It is amount received by the company as prepayment for the goods or service provid...

Q: The stockholders' equity section of Heatherly Corporation's balance sheet as of December 31, 2021 is...

A: Shareholder's Equity Shareholders equity which is consist of both common stock and preference stock ...

Q: Moustapha and Ava have owned X Corp as equal shareholders for the last five years. Due to unexpected...

A: Solution:- Given, Moustapha and Ava have owned X Corp. as equal shareholders for the last 5 years M...

Q: Which of the following accounts would not appear in the Balance Sheet columns of the end-of-period s...

A: Service revenue is P&L account and it is transferred to P&L in order to calculate the final ...

Q: On December 31, 2011, Lin Co. purchased an equipment with an estimated useful life of 10 years. The ...

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage a...

Q: Financial audit Q&A What risks that may occur during assertion testing, but cannot be prevented due ...

Q: Pro Accountants Inc. (PAI) had the following transactions in 2021: A total of $1,450,000 was billed ...

A: *As per Bartleby Policy, if the question are not related then answer first only. As per accrual basi...

Q: what are some of the key strategic functions of the CFO in the current world of business? How does t...

A: 1) Following are the key strategic functions of the CFO in the current world of business: Analysis ...

Q: Owners enjoy limited liability in a a) partnership b) corporation c) sole proprietorship d) prop...

A: Solution: Corporations are separate legal entity from owners / shareholders. In corporations, owners...

Q: Shore Company reports the following information regarding its production cost. 29,000 units 24 Units...

A: Product cost per unit under absorption costing = Direct material + Direct labor + Variable overhead ...

Q: 1.Pi, Ka and Chu are partners in a partnership. If Pi and Ka are capitalist partners sharing 60 %, 4...

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts f...

Q: Your client, Ms. I. M. Gorgeous, is an aspiring actress. She has managed to earn a living doing tele...

A: Deductible expenses are those that can be subtracted from a professional or company's income before ...

Q: The standard quantity allowed for the units produced was 4,500 pounds, the standard price was P2.50 ...

A: Solution: Standard quantity for actual production = 4500 pound Standard quantity per units produced ...

Q: Financial audit Q&A Auditors also need to consider the subjective needs of users of financial statem...

A: Auditing involves an independent examination of financial records of an entity with a view to provid...

Q: At Vision Club Company, office workers are employed for a 40-hour workweek on either an annual or a ...

A: Solution A Wage is compensation paid to the employees for work for a company during a period of time...

Q: X Company, the buyer, re ovember 2020. If the term discount period, what am

A: Formula: Amount paid = Total Invoice amount - Discount amount.

Question

What are the benefits of Activity-based costing:

a.All of the answers are correct

b.It assists in justifying equipment purchases or improvements

c.It is more credible than traditional costing

d.It helps to improve responsibility reporting

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Concept of activity-based costing

VIEW

Evaluation of options

VIEW

Answer

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Striving to produce the same activity output with lower costs for the input used is concerned with which of the following dimensions of activity performance? a. Quality b. Time c. Activity sharing d. Effectiveness e. Efficiency
Which of the following is a benefit of activity-based cost management system? a.It makes it easy to identify the overall activities that bear an influence on cost. b.It is inexpensive. c.It enhances strategic planning. d.It ensures allocation of all costs on the basis of machine hours.
"Standard costing improves the control function"explain with more information and examples
Activity-based costing does a better job of allocating both direct and indirect cost than traditional methods do.” Is this statement true, false, or uncertain? Explain providing specific evidence to support your view.
In the blank next to the following terms, place the letter A through D corresponding to the best description of that term. 1. Activity 2. Activity driver 3. Cost pool 4. Cost object A. Measurement associated with an activity. B. A group of costs that have the same activity drivers. C. Anything to which costs will be assigned. D. A task that causes a cost to be incurred.
Decisions where relevant cost analysis might be used effective is Keep or replace decision. Explain IN YOUR OWN WORDS what "Keep or replace decision" is AND MUST USE EXAMPLES IN YOUR DESCRIPTION.
1. Discuss the significance of activity based costing(ABC) system in cost management. 2. For purposes of making decisions ,the concept of differential cost and revenue, opportunity cost and sunk cost are vitally important. Briefly explain each cost and its importance to decision making.
“Standard costing improves the control functions” discuss this statement give some examples.
"Activity-based costing does a better job of allocating both direct and indirect cost than traditional methods do.” Is this statement true, false, or uncertain?
Strategic Cost Management Give what is required of the problem. What is the correct answer to numbers 1 and 2?
Standard Costing helps in : Measuring efficiency Reducing loss Controlling cost
2. The internal cost analysis process involves the following in what order? (A) Identify the links between the process and check for opportunities to lower costs, (B) Identify the value creating processes and the cost of each, (C) Identify the cost driver for each process and the cost per activity level. a. A, B, Cb. C, A, Bc. B, A, Cd. B, C, A