Define the term cost per service.

Q: Define Prior service cost.

A:

Q: Define the term normal costing.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: - absorption costing method,

A: Absorption costing method uses both variable and fixed costs to calculate product cost.

Q: Explain difference between prime costs and conversion costs.

A: Prime cost: It is the cost which is incurred for manufacturing a product. It includes direct…

Q: Define the following terms: (a) cost behavior and (b) relevant range.

A: Cost behavior and relevant range are terms under cost accounting. Cost behavior studies the pattern…

Q: What modifications are made to the cost classification of product costs in estimating service costs?

A: Cost classification refers to the separation of various expenses into different categories. It is…

Q: Distinguish between two methods of allocating common costs.

A: Cost Allocation Method: The cost allocation method is the method by which the costs to be assigned…

Q: Explain the difference between direct costs and indirect cost

A: Direct cost is the cost incurred by the organization while performing their center business process…

Q: costs and are allocated based on

A: Fixed costs allocated = 25% * Total costs 25% * $48000 = $12000

Q: Explain the difference between service cost and prior service cost.

A: Service cost: The present value of the investment made by the beneficiary and the employer in the…

Q: What is a prior service cost?

A: Prior service cost is one of the component of pension expense. It means present value of benefits or…

Q: How much is service cost for the vear?

A: Service cost is the additions to the pension fund during the year for rendering services by the…

Q: Define cost structure.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: A direct costs is a cost that is:

A: Solution:- B) Option "B" is the correct answer Reason:- A direct cost is the that is identifiable as…

Q: What is the difference between direct and indirect costs? Explain.

A: Cost is the expense incurred for producing or manufacturing a product. It includes raw material,…

Q: What is service cost, and what is the basis of its measurement?

A: Service cost: Actuarial present value of benefit attributed by the pension benefit formula to…

Q: Giving examples, distinguish between  Direct costs and indirect costs

A: Direct Costs are the costs that can be directly traced with the goods produced. It generally…

Q: What is Cost account payable

A: All variable costs are reduced from sales revenue to get at a contribution margin, from which all…

Q: a) Classify each cost element as either fixed, variable, or mixed

A: Cost Accounting: Fixed Cost: The cost which constant for the year and there is no impact of any…

Q: Distinguish between a traceable cost and a common cost. Give several examples of each.

A: Fixed Expense:   It is the expense incurred by a company not related to the volume of output…

Q: What costs are assigned to a segment under the contribution approach?

A: Contribution approach is approach used to present income statement in which all the variable costs…

Q: define direct material costs?

A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other…

Q: Describe the components of contribution margin.

A: Contribution Margin: Contribution Margin refers to the margin of profit expected by the company. The…

Q: Define conversion costs?

A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other…

Q: What is the purpose of using standard costs?

A:

Q: What is a standard cost? Explain? Give an example?

A: Standard Cost: Standard cost is the benchmark amount of per unit product, per unit input or per unit…

Q: Define unit costs.

A: Unit cost is the cost incurred by the company in the production, storage and selling of one unit of…

Q: Distinguish between inventoriable costs and period costs.

A: Characterizations of expenses. Inventoriable expenses is characterised as prices that become a part…

Q: Describe the concept of the INITIAL DIRECT COSTS?

A: Definition:   Initial direct costs: Initial direct costs refer to the costs that a lessor incurs…

Q: Distinguish between indirect costs and direct costs.

A: Direct Costs and Indirect Costs are two important costs. Direct costs are those costs which are…

Q: Define the terms sunk cost and differential cost.

A: Differential cost:  Differential cost is the change in total cost due to increase or decrease in…

Q: How are costs allocated in an ABC system?

A: ABC system means activity-based costing.

Q: Describe the difference between prime costs and conversion costs?

A: Solution:-  Difference between prime costs and conversion costs as follows under:-

Q: What is the definition of a cost object?

A: This question explains about the cost object.

Q: Explain the difference between a direct cost and an indirect cost.

A: Direct Cost: A direct cost is a cost that can directly be associated with a particular department or…

Q: Describe the concepts of contribution margin, relevant range, and relevant costs

A: Solution:- Analysis the concepts of contribution margin, relevant range, and relevant costs as…

Q: Describe the term “cost driver” and give an example. Describe the term “relevant range” and give an…

A: Cost driver and relevant range are two important terms that are used in accounting. Cost driver…

Q: Define prime cost and conversion cost.

A: Prime cost and conversion cost are the two most important concepts of cost accounting. These…

Q: Distinguish between traceable and common fixed costs.

A: Fixed costs are referred to as the costs that do not change with a change in the level of the…

Q: Explain one example of the cost driver.

A: Cost drivers are used in Activity Based Costing. Cost drivers are used to allocate overhead costs to…

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.