Explain why support costs are allocated to departments.

Q: What is conceptually the most defensible method for allocating support-department costs? Why?

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

Q: Explain the Role of activity based costing technique in improving organisational performance.

A: SOLUTION- ACTIVITY BASED COSTING-  IT IS USED TO GET A BETTER GRASP ON COSTS ALLOWING COMPANIES TO…

Q: Explain the role of unit cost in task order pricing.

A: Task orders refer to the contract made for specific and separate orders. These are the small…

Q: Which of the following is the most difficult but most accurate of the commonly used methods for…

A: The cost of support departments is allocated to the production departments. Some a support…

Q: Explain the Role of environmental costing in improving organisational performance

A: Environmental Costing is an important tool for understanding the role played by the Natural…

Q: Explain how nonuniform inputs and multiple departments affect process co

A: Solution Concept Process costing is a method of costing where the production process is carried out…

Q: Allocate the support department costs to the production departments using the direct method.

A: Solution:- Janitorial department total cost = $310,000 Total square of production department…

Q: Classify the following cost drivers as structural, executional, or operational.

A: Classification of cost derives: Classification 0f the given cost drivers as structural, executional,…

Q: Function of human resources management

A: Solution- Human resource management (HRM) is nothing but managing human resources. it's the policies…

Q: 1. What types of costs are allocated? What is a support department? What is a producing department?…

A: Allocation refers to distribution of total overhead cost to the departments that have actually used…

Q: What are support departments, and why are their costs allocated to other departments?  What process…

A: generally supporting departments are the departments that provide services to main departments. so…

Q: What are support departments, and why are their costs allocated to other departments?  What process…

A: Support departments are those departments which helps or provides support to other operation…

Q: Give an example of a common resource in an organization. List some of the opportunity costs…

A: Opportunity cost: Opportunity cost refers to the forgone revenue that could have been generated…

Q: Give examples of allocation bases used to allocate support-department cost pools to operating…

A:

Q: Assigning indirect costs to departments is completed by ________.

A: Indirect costs are those costs that are not directly related with the production or selling. These…

Q: Explain the Role of absorption costing to improve organisational performance

A: Absorption costing means absorption of all cost of company. It allocates fixed overhead cost to the…

Q: How cost accounting is useful for external user as Government ,and customer etc.support your answer…

A: Cost accounting system is a framework that guides the firm to calculate their cost and helps in…

Q: Explain the relationship between the costs of flexible and committed resources, usage of resources,…

A: Cost accounting system: Cost accounting system of an organization consists of procedures and…

Q: Why does dual cost allocation improve the resulting allocation of service department costs?

A: Dual Cost Allocation segregates total costs into two parts Fixed Costs. Variable Costs. Each…

Q: What is the typical focus of responsibility reports for cost centers, revenue centers, and profit…

A: Responsibility Centre:   A responsibility centre is used to show the financial performance of all…

Q: Explain how the choice of the type of responsibility center (cost, revenue, profit, or investment)…

A:

Q: For each of the following support departments, identify a cost driver that could be used for…

A: A cost driver seems to be the source of a cost that has an impact on the overall cost. For instance,…

Q: explain the cost management information system's two major subsystems

A: The cost management information system's primary goal is to generate outputs for internal users. To…

Q: Cost and Costing, as well as the importance of calculating costs in product management, may be…

A: Cost refers to the value of money that has been used to produce or manufacture something. It can…

Q: Which of the following is referred to as the second stage of cost allocation? O The allocation of…

A: Cost allocation is the assigning and allocating the cost to the specific objects, departments,…

Q: Describe the difference between direct and step-down methods to allocate service department costs to…

A: Service departments are those department which provides services to other departments like other…

Q: need distrebution the cost of service centers to the production center.

A: Overhead is the cost that is directly involved in the production process of the company. It is…

Q: Distinguish between direct and indirect expenses and identify bases for allocating indirect expenses…

A:

Q: How standard costing control the business activity

A: Standard Costing is the technique of setting up standard costs and applying them to measure the…

Q: How cost accounting is useful for external user as Government ,and customer etc,support your answer…

A: Cost accounting gives complete details of the cost incurred in the manufacturing of the product and…

Q: are measures of activities that require the use of resources and thereby cause costs Value Chain…

A: Solution: Cost drivers are measure of activities that requires the use of resources and thereby…

Q: Which method of allocating support department costs is most accurate of the three methods.

A:

Q: Match each of the following type of responsibility centers with what all they are accountable for.…

A: Responsibility Center: A business segment whose managers are responsible or accountable for certain…

Q: Discuss the role of cost accounting in relation to various department in organisation.

A: Introduction: Cost accounting is a form of managerial accounting that aims to capture a company's…

Q: Differentiate between operating costs and administrative costs?

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Why do we require product, task order, and process cost data?

A: The Answer :

Q: Give examples of external forces that may affect human resources. Explain them briefly.

A: External forces that affect company human resources are the factors environment which are outside…

Q: How to allocate indirect costs to multiple departments using an ABC cost driver?

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Q: Distinguish among the three methods of allocating the costs of support departments to operating…

A:

Q: Define and explain the two major subsystems of the cost management information system.

A: The Cost Accounting Information System (CAIS) is a monetary accounting system that calculates the…

Q: A responsibility center in which the department manager has responsibility for and authority over…

A: Costs might be traced to manufacturing and to specific locations within a business entity and…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.