In cost terms, direct labor cost is included in A. Manufacturing costs B. Prime costs C. Conversion costs D. B and C E. A, B and C

Q: Which of the following statements best describes conversion costs? OA. Conversion costs are all…

A: Process costing is a term used in cost accounting to describe one method for collecting and…

Q: Conversion costs are: A. direct material, direct labor, and manufacturing overhead. B. direct…

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

Q: Identify the two types of costs that make upa product’s total cost.

A: Product costs are costs that are incurred to form a product that's supposed available to customers.…

Q: 9. Selling and administrative costs are direct costs. O inventoriable costs. O period costs.…

A: Ans. The cost incurred by a business entity is broadly divided into two categories as : i. Direct…

Q: Which of the following does NOT form a part of Total cost? A. Production overheads B. Factory…

A: Total cost involves all the cost incurred in order to reach a particular level of output.

Q: allocation bases are

A: Activity-based costing is commonly known as ABC. It is a costing method that allocates indirect…

Q: Conversion cost is: *   a. Combination of direct materials and direct labor       b. Combination of…

A: The costs incurred on production includes direct material costs, direct labor cost and manufacturing…

Q: Production cost include direct materials, direct labor, and selling costs. True or False

A: Cost accounting is one of useful branch of accounting. Under this, different type of costs and…

Q: Consider the following statements concerning activity-based costing. 1. Cost pools are linked to…

A: 1. The correct answer is: (D) Total life cycle costing. While Kaizen costing and total life-cycle…

Q: Which of the following statements is true about byproduct costing?    Byproduct costs are allocated…

A: Byproduct costing is the method of allocating costs to the main product and byproducts in a…

Q: 1. Which of the following are period costs? Raw materials Direct materials and direct labor Direct…

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

Q: Conversion costs consist of O A. direct labor B. manufacturing overhead C. A only D. Both a and b O…

A: Conversion costs include all those costs which are required to convert direct materials into…

Q: are all manufacturing costs that are related to the cost object but CANNOT be traced to that cost…

A: The costs which are not directly related to production process are called Period costs.These are not…

Q: Under direct/marginal costing, a unit of product includes which costs? direct material, direct…

A: Marginal costing is the method of determining the operating income. It separately shows the variable…

Q: Indirect materials and indirect labour are classified as: O a. manufacturing overhead and product…

A: Costs that are not traced to the product directly are known as indirect costs. These costs are…

Q: When materials and supplies are used in a product that will be sold to customers, the usage of the…

A: The answer for the multiple choice question and relevant explanation are presented hereunder :…

Q: costing is seen as part of the total life-cycle costing approach, in that cost savings are sought at…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: The ABC system improves the allocation of​ ________.   A. direct materials   B. sales commissions…

A: ABC system: Activity based cost system is widely used in the manufacturing industry. Under this…

Q: When products and their costs are moved from one process to the next process, these costs are…

A: Process costing is a method of costing used to ascertain the cost of a product at each stage or…

Q: costing concentrates on managing costs by making as many small savings as possible. ...

A: 1. The correct answer is: (A) Kaizen    Kaizen costing is a cost management technique used to…

Q: Costs that can be traced to a unit of product but not in a cost-effective way: (A) Direct Cost (B)…

A: TRACEABLE COST  All Direct Cost are Traceable cost Such as Direct Material & Direct Labour.…

Q: Conversion costs are A. direct materials plus manufacturing overhead. B. direct labor plus…

A: Conversion cost are those cost which are incurred to convert raw material into finished goods.

Q: a. manufacturing overhead costs O b. indirect labour costs O C. direct labour costs O d. direct…

A: The costs incurred for the production are classified as direct and indirect costs. The costs are…

Q: Activity based costing

A: Definition: Costing: Costing is calculated as an amount spent by the company in order to produce a…

Q: Activity-based costing first assigns costs to a. Products b. Activities c. Overhead d. Departments

A: Activity based costing is a type or form of costing which is useful for overheads allocation to…

Q: Question: In a manufacturing setting, direct labor costs are considered: a) Variable costs b) Fixed…

A: Variable costs - Fixed costs - Mixed costs- Overhead costs

Q: What is the primary difference between the two cost accounting, systems regarding the accumation of…

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

Q: Manufacturing costs include selling and administrative costs. Select one: O a. TRUE O b. FALSE

A: Manufacturing cost: It is a cost incurred for the production of a product like Direct labor, direct…

Q: 1. Match one or more of the following terms with each definition below: Inventoriable product costs…

A: The given terms in the questions should be matched with definitions given below.

Q: Prime cost consists of: Select one: O A. Direct labour O B. Direct materials and direct labour C.…

A: Factory overheads is the amount of indirect expenses which are not directly identifiable to the…

Q: Which of the following would be both a prime cost and a conversion cost? direct labor direct…

A: Process costing: Process costing is included costs like labor, material, and overhead which…

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: Activity based Costing enables overhead cost to be ___________assigned to cost objects. a. Over b.…

A: Activity Based Costing is a method of accounting which is used to find the cost of activities…

Q: In a process cost system, conversion costs consist of direct material and direct labor * O Ture…

A: Cost accounting is the process of estimating the cost of production in a business. Cost accounting…

Q: Activity Based Costing classified costs into A. Three Groups - material, labour and overhead B.…

A: Under Activity-based costing, indirect costs are divided on the basis of the activity among the…

Q: Match one or more of the following terms with each definition below: a. Direct labour e.…

A: Introduction: The expenditures spent to sustain your company's day-to-day operations are referred to…

Q: Prime cost is? A)Group of answer choices B)indirect materials cost and direct labor cost.…

A: Prime cost refers to the cost related to direct labour and direct material  For example in the…

Q: When materials costs differ significantly among products in a value stream, the valuestream product…

A: In contrast to traditional costing, value stream costing is an accounting technique for tracking…

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.