In a sell or process further decision, consider the following costs: 1. A variable production cost incurred prior to split-off. 2. A variable production cost incurred after split-off. 3. An avoidable fixed production cost incurred after split-off. Which of the above costs is (are) not relevant in a decision regarding whether the product should be processed further? Only I and II Only I and III Only III Only I

In a sell or process further decision, consider the following costs: 1. A variable production cost incurred prior to split-off. 2. A variable production cost incurred after split-off. 3. An avoidable fixed production cost incurred after split-off. Which of the above costs is (are) not relevant in a decision regarding whether the product should be processed further? Only I and II Only I and III Only III Only I

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter20: Variable Costing For Management Analysis

Section: Chapter Questions

Problem 9DQ: Discuss the two factors affecting both sales and variable costs to which a change in contribution...

See similar textbooks

Similar questions

Discuss the two factors affecting both sales and variable costs to which a change in contribution margin can be attributed.
Question 9 Which of the following is NOT normally associated with activity-based costing? A Improved decision-making and pricing B Multiple cost drivers C Reduction of non-value-adding costs D Activity cost pools E I do not wish to answer this question. F High direct labour costs relative to manufacturing overhead costs
SECTION BQUESTION 1 “Costing systems attempt to explain how products consume resources but do not indicate the joint benefits of having multiple products.”Required: Citing examples of at least two costing systems, a. Explain the statement above. b. Explain how the addition of a new product to the product range may affect the cost of existing products. c. Outline the consequences, in terms of profitability, of decision to increase/decrease the product range. d. Identify six costing systems.
49 Which of the following cost is difficult to allocate and apportioned to specific product? a. None of these b. Direct costs c. Indirect and direct cost d. Indirect costs Clear my choice
Which of the following statements about the use of relevant cost analysis in decision making is true? O Future costs that do not differ between the alternatives may or may not be relevant in a decision. O Per-unit variable costs are always differential costs. O A production cost incurred before the split-off point in a joint process is relevant in a sell as-is or process further decision. O If a special order decision requires the use of capacity that is not idle, opportunity costs are zero.
6- Absorption costing makes an apportionment of indirect costs so that the products absorb these costs. The main problem with this procedure can be pointed out: *a) only considers fixed costsb) the apportionment is arbitraryc) disregards variable costsd) only considers variable costs
49 Which of the following cost is difficult to allocate and apportioned to specific product? a. None of these b. Direct costs c. Indirect and direct cost d. Indirect costs
5) Choosing to outsource a component of a product or manufacture it internally is an example of a(n): A. Opportunity cost. B. Sunk cost. C. Out-of-pocket cost. D. Period cost. E. Fixed cost.
Question # 2 A Report a Problem GRevisit Choose the best option With reference to cost classification, this pair, giving Type of cost and Basis of classification, Material cost; Components of cost does not match. O Expired and unexpired costs; Periodicity O Direct and indirect costs; Nature of cost O Relevant cost; Management decision Pr +91 80 4719 0917 Deepanshu | Support +1 650-924-9221 POMEREO metti x目 P Type here to search hp f1o 18 17 f6 fs f3 f4 IOI 米 7 23 3 5 K G H D F T %24
QUESTION 28 Which of the following is not a reason for cost allocation? A. Maximization of direct cost efficiency B. Cost-based reimbursement C. Cost determination of product or service D. Cross-department monitoring
QUESTION 7 Choose the correct statements from the following: O Variable costing and absorption costing are the same. O For decision making, absorption costing is more suitable than variable costing. O Variable costing is based on the distinction between fixed and variable costs. O Absorption costing produces a lower product cost.
QUESTION 14 A cost that is not easily or conveniently traceable to a cost object is known as: Additional cost Collective cost Indirect cost Conversion cost