Ch. 5 Practice Questions Pg. 387 #4 The formula for estimating cost behavior is y=a + bx.  Explain what each term represents.

Q: 6. Conventional CVP analysis requires management to classify all costs as either with respect to…

A: Cost volume profit (CVP) analysis is an accounting technique of determining the effect of change in…

Q: Q.How do managers plan for variable overhead costs?

A: The cost which is dependent upon the level of output and changes if the level of output fluctuates…

Q: 6. What the effect of JIT Systems on Product Costing?

A: Just-in-time, or JIT, is a technique of inventory management or control in which labor, materials,…

Q: 1. With relevant examples, explain the following; i. Primary appointment and secondary apportionment…

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

Q: 18. Responsibility reports for cost centres include: Controllable Non-controllable costs costs а. No…

A: Responsibility accounting reports activities that are in control by the management.

Q: 6) Define fixed, variable

A: Answer: Fixed cost A fixed cost is a value that doesn't modification over the short, although a…

Q: A cost driver   a. causes fixed costs to rise because of production changes. b. has a direct…

A: According to activity based costing, the overhead cost is applied to the production on the basis of…

Q: Cost Behavior Ch. 6 Please provide the Break-Even formula and give an example and explain the…

A: Break-even is considered as break-even point.

Q: VOLUME BASED COST SYSTEMS Pg 4   Would you please tell me the formula and how to solve for "Total…

A: Manufacturing overhead costs: Manufacturing overhead costs are costs that are not directly related…

Q: Which cost estimation method is the least accurate or the most subjective?  account analysis…

A: Account analysis method of cost estimation decided whether the cost is fixed or variable it depends…

Q: Q1) Below are the examples of cost objects, except: a. product b. services c. department d.…

A: Cost object means something that the company should measure separately as a object which is…

Q: 24 What is Cost object in Activity based costing? a. It is an item for which cost measurement is…

A: answer

Q: (planne and actual) ing ov nd administrative costs administrative costs planned and actual) P סס P…

A: Ending Inventory as per Absorption Costing = Manufacturing cost per unit* Units in ending inventory.…

Q: The total cost of a cost object can only include the direct costs that are directly traced to that…

A: The total cost of a cost object includes both costs i.e costs that are directly traced and…

Q: 3* Choose the correct answer. A. Standard Costing Involve the a) Fixation of estimated cost b)…

A: Since there are multiple questions, we will solve first for you. To get the remaining questions…

Q: Cost assignment and cost accumulation

A: Cost assignment is a process used in cost accounting system to allocate costs among products,…

Q: How is conversion cost per equivalent unit calculated

A: Equivalent production refers to total number of units that are fully completed during the period and…

Q: 9 6 7 8 5 4 3 Question # 1 2 For each item above, indicate whether the cost is MAINLY fixed or…

A: The cost can be classified based on nature like fixed costs or variable costs. The cost is variable…

Q: 7.14 How can deviations be used to analyze costs in separate areas of activity?

A: Cost variance analysis is used under both traditional and activity based costing methods. The only…

Q: 1. IFRS prohibits which cost flow assumption? Problem 11-25 Multiple choice (IAA) LIFO b. Specific…

A: Cash flow assumption means the method use to calculate the cost of goods sold and cost of ending…

Q: Question 2 Compare and contrast absorption and marginal costing.

A: The income statement is prepared on the basis of Marginal costing or absorption costing.

Q: 2. FIFO 3. LIFO 4. Weighted average method (Round average unit cost to the nearest cent, and round…

A:

Q: (ii) Describe TWO (2) other methods that HHSB can use to set transfer price other than full…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Chapter 21: Cost Behavior and Cost-Volume-Profit Analysis Requirement 1: Please explain variable,…

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

Q: compute for the total fixed costs under period 1. 5. using the data, compute for the fixed cost per…

A: Fixed Costs: Total fixed costs do not change with the change in activity base or unit. In the other…

Q: 4. Explain the difference between product costs and period costs.

A: Product costs are the costs which are applied for the manufacturing or production of products. These…

Q: The cost that can be directly identified with a cost unit/centre and can be allocated to that cost…

A: Cost of production = Direct manufacturing costs + Indirect manufacturing costs   Indirect costs =…

Q: 17) Target costing sets prices by computing an average cost and then adding a desired markup.

A: Target costing is a method adopted by the management to determine product cost and to use such cost…

Q: QUESTION 14 A cost that is not easily or conveniently traceable to a cost object is known as:…

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

Q: Costs that are not related to any specific product, batch, or unit of production are referred to as…

A: In activity based costing facilty level costs are costs which cannot be allocated to any special…

Q: and period costs. 6. What is the difference between gross margin and manufacturing margin?

A: The costs directly associated with the creation of product or service for sale are known as a…

Q: 7. How is direct material cost per equivalent unit calculated?

A: Equivalent units of products concept came in to existence when some units are not fully completed at…

Q: Volume Based Costing vs. Activity Based Costing Pg 326 Please explain the differences and…

A: Activity based costing: It is a method for allocating overhead cost to products based on consumption…

Q: . The term relevant range as used in cost accounting means the range over which a• Cost may…

A: Solution: The term relevant range as used in cost accounting means the range over which "Cost…

Q: Question 5.4 Stark and Company's has the following cost data:

A: In this question, we have to compute the total prevention costs , total appraisal costs and internal…

Q: Q.3.4 Briefly discuss the following concepts. Your discussion should include reference as to how it…

A: The various types of costs are incurred to produce a product some are directly related to the…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.