How important is it to trace costs appropriately?  Explain. As you are beginning to think about the importance of tracing costs appropriately, please consider the differences between variable costing and absorption costing.  What implications does each of these have on such things as financial reporting of profit and pricing your products for the marketplace?

Q: What type of cost drivers do modern costing systems use and how does it differ from the cost drivers…

A: Cost Driver Business activities are  influenced by a cost driver . Cost drivers are the factors…

Q: Kaizen costing aims to reduce costs during the A. production B. post-production C. design D. testing…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: nother cost-based approach to pricing is called time and material pricing. Under this approach, two…

A: Answer: Some companies--partiicularly in service industries-- use a variiation of cost and pricing…

Q: When should a company use absorption costing when setting sales prices? When should it use variable…

A: Variable Costing: "Variable costing is a method that allocates only variable manufacturing costs to…

Q: Why do managers consider Direct Coasts to be more accurate than Indirect  Costs?  How do managers…

A: Direct costs are the costs which are directly identifiable in the manufacturing process.  Indirect…

Q: A typical planning decision would be described as: Select one: O A. Monitoring actual sales…

A: Typically planning is Process of making a detailed proposal for doing or achieving something. In…

Q: What is a good response to this post? Being that the big difference between the two margins is…

A: POST:Being that the big difference between the two margins is mostly in fixed costs, this plays a…

Q: Explains the effect on profit of using variable (marginal) and absorption costing.

A: The income statement can be prepared using various methods as absorption costing and variable…

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: o alternatives for prod

A: The two alternatives for product costing systems are job costing and process costing. Job Costing:…

Q: 2) Many firms have decided to use marginal costing to prepare the income statement. Please briefly…

A: Marginal Costing is a costing technique wherein the marginal cost, i.e. variable cost is charged to…

Q: What are some common challenges that companies face when implementing standard cost systems, and how…

A: Implementing a standard cost system can be a challenging process for companies, and some common…

Q: Decisions where relevant cost analysis might be used effective is Keep or replace decision. Explain…

A: Relevant costs are those costs that can be used while making a decision on whether to keep or…

Q: Differentiate between the adoption of “Variable costing” and “absorption costing” in business.

A: Variable costing and absorption costing are the two different costing systems used by the business.…

Q: What are the different types of cost?

A: Costs refer to any expenditure done by a business or a firm in the process of production of a…

Q: Cost calculation

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

Q: Critically evaluate the concept and application of marginal costing

A: Concept of marginal costing: Marginal cost is the difference between total costs increasing or…

Q: Why do most companies use normal or standard costing? After all, actual costing gives the actual…

A: The standard costing is a costing system that is used to estimate the expenses of the production…

Q: Which costing system is helpful for internal managers when they're trying to make a short- term…

A: Cost Accounting is a process of identification, classification, measurement, and assignment of costs…

Q: "Sunk costs are considered by a manufacturer in decision making". Do you agree? Explain.

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

Q: What are these equations? c.Under absorption costing, what is the cost of goods sold? d.Under…

A: Hey, since there are multiple subparts posted, we will answer the first three subparts. If you want…

Q: Which of the following is subjective approach in costing? a. All of these b. Traditional costing c.…

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

Q: Discuss the different situations for when Traditional Absorption Costing and Relevant costing would…

A: The traditional absorption costing is useful to estimate the cost of production that include direct…

Q: What is the difference of price and cost? From (a) point of view of a customer; and (b) point of…

A: For businesses, the term "cost" refers to the expenditure associated with producing a something or…

Q: It known that variable costing should be used for pricing purposes. What is the benefit of using…

A: There are mainly two types of Costing systems that are variable costing and absorption costing.…

Q: In your own words, explain what differential costs mean. How are fixed costs and variable costs…

A: The cost can be classified on the basis of nature variable or fixed. The variable cost are directly…

Q: QUESTION 1 Match the type of company and its most likely pricing approach given the company sells…

A: Cost-Plus Pricing Strategy: Retailers frequently use this pricing approach to set prices. Cost-plus…

Q: Decisions where relevant cost analysis might be used effective is Segment Elimination. Explain IN…

A: Segment elimination refers to the elimination of segment based on analysis of relevant revenue and…

Q: Cost-volume-profit analysis is used to make many decisions, including product pricing and…

A: cost volume profit analysis (CVP analysis) is used to determine many factors such as 1)desired…

Q: Compare actual and normal costing. What is the benefit of each? What is a circumstance in which each…

A: Actual Costing: Actual costing is a cost bookkeeping framework that utilizes genuine cost,…

Q: in which cases is it preferable to prepare the income statement based on marginal costing? Justify…

A: Income statement refers to the statement which is being prepared by the business in order to…

Q: Explain cost concepts it is relevant for the company to be aware of in decision situations such as.…

A: Here discuss about the details of the various costs which are incurred to the business entity which…

Q: 1. Why are indirect costs not directly traced to cost objects in the same way as direct costs? 2.…

A: Costing is the process of determining and calculating the expenses incurred in producing goods or…

Q: Explain how increasing production can increase gross profit when using absorption costing.

A: Absorption costing: Absorption costing is compulsory under Generally Accepted Accounting Principles…

Q: Discuss the Top-to-Bottom and Bottom-to-Top approaches in Cost Estimating. Focus your discussion in…

A: Meaning: Top-to-Bottom approach: Top-to-Bottom approach is also called imposed style cost estimation…

Q: Which of the following is not an application of cost-volume-profit analysis? Setting prices…

A: The objective of the question is to identify which of the given options is not an application of…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.