Statement 1: Cost Accounting relates to the conventional costing methods and techniques in accumulating the cost of a product, process, project or service, including both product and period cost in accumulating cost. Statement 2: Cost Accounting aims to reflect the correct
Q: Winters, Inc. is preparing financial statements to be distributed to investors and creditors. The…
A: Absorption costing: In absorption costing company considers both fixed and variable Manufacturing…
Q: Management accounting guidelines. For each of the following items, identify which of the management…
A: The cost-benefit approach indicates the decision-making of management in selecting one option among…
Q: 1. "Cost accounting is a form of managerial accounting that aims to capture a company's total cost…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Which of the following is NOT one of the definitions of "Cost" concept? Select one: a. Cost means…
A: Cost is very broad term used in accounting. It denotes amount and level of expenses that can be…
Q: In an income statement prepared as an internal report using the variable costing method, fixed…
A: Net operating income under absorption costing = Net operating income under variable costing +…
Q: THE MAIN DIFFERENCE BETWEEN EX-ANTE AND EX-POST ECONOMIC PROFIT a. Representing the opportunity…
A: b. is called the hold-up problem
Q: Listed below are nine technical accounting terms introduced in this chapter:Variable costs Relevant…
A:
Q: Listed are seven technical accounting terms introduced or emphasized. Sunk cost Opportunity cost…
A: An opportunity cost is the next best alternative. A sunk cost is cost incurred in past and not…
Q: Product costs are ordinarily found in the traditional Income Statement's Operating Expenses whereas…
A: Product costs are those costs which are incurred on specific products like material cost, labour…
Q: Which of the following statements is true? Multiple Choice Product costs and variable costs are…
A: Product cost means the cost which are incurred to create a product that is intended for sale to the…
Q: Absorption costing is intended for Select one: O a. None of the above O b. Outside distribution or…
A: Absorption Costing:-It refers to the method of costing to account for all the costs of…
Q: Cost accounting depends entirely on historical information. Select one: True False
A: Cost accounting is the accounting of the total cost related to production of the product. It…
Q: The production manager wants to achieve real and permanently decrease in the unit cost of the…
A: A planned constructive solution to reducing spending is cost reduction. Cost reduction is described…
Q: In determining cost behavior in business, the cost function is often expressed as Y=a+bX. Which one…
A: There are two types of costs in the business, one is fixed costs and other is variable costs. Fixed…
Q: a) Use activity-based costing to estimate the cost of preparing: i A wage and salary tax return. ii…
A: Activity-based costing (ABC): Activity based costing (ABC) framework was created to manage the…
Q: d. Explain why there is or is not a difference in the net income amounts in the two income…
A: Absorption costing and variable costing are two costing methods under which the major difference…
Q: Statement 1: Cost Accounting relates to the conventional costing methods and techniques in…
A: Solution: True, Cost Accounting relates to the conventional costing methods and techniques in…
Q: Cost-volume-profit analysis (CVP Analysis) requires management to classify all costs as either…
A: Cost volume profit analysis (CVP Analysis) helps the business entity in determining the impact on…
Q: Which of the following statement is false? Multiple Choice a)The contribution margin…
A: Ans. Absorption costing allocates fixed manufacturing overhead to a product whether or not it is…
Q: Cost that remains unchanged in total within a relevant range of operations yet decreases per unit of…
A: Fixed Cost and Variable Cost - Fixed Cost are the cost which remain unchanged to the certain level…
Q: First: When reconciling variable costing and absorption costing net operating income, fixed…
A: Answer: option c. Only the second statement is true Explanation: Under absorption costing, a portion…
Q: In making short-term business decisions, what should you do? a. Use a traditional costing approach.…
A: Business decision refers to large part of conducting business is making decisions.
Q: Required: a) Use activity-based costing to estimate the cost of preparing: i A wage and salary tax…
A: ABC (Activity based costing) framework was created to manage the drawbacks of customary costing…
Q: . Which of the following is the best definition of a variable cost? A. A variable cost is one which…
A: Variable costs are the costs that vary on the basis of the level of output. They are determined per…
Q: Which of these is not an objective of Cost Accounting? O a. Ascertainment of Cost O b. Cost Control…
A: Cost accounting means where every cost of doing business is recorded in necessary account and cost…
Q: 1-Why is it important to distinguish cost incurrence from locked-in cost? 2- How do companies…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The following are nine technical accounting terms introduced or emphasized in this chapter. Transfer…
A: Contribution Margin = Sales -Variable Cost
Q: The following are nine technical accounting terms: Responsibility margin Contribution margin…
A: Responsibility accounting is a term that asserts that each expenditure incurred in the organization…
Q: Is Historical Cost measurement concept is still relevant to account for majority of the company…
A: Historical Cost Measurement Concept In this concept valuation of the cost of an assets which are…
Q: One of the primary uses of a cost of production report is to assist management in controlling…
A: Production Cost Report: A production cost report is used by the firm to summarise the production…
Q: For each of the following statements, indicate whether it is true, false, or uncertain. a. A cost is…
A: Total cost is the summation of fixed costs and variable costs incurred in the process of production.…
Q: Exercises Listed as follows are seven technical accounting terms introduced or emphasized in thie…
A: Costing: Costing is a technique to ascertain costs.
Q: 1. The amount of increase or decrease in revenue that is expected from a particular course of action…
A: Differential costing is a technique where differential costs are considered relevant. Differential…
Q: In Classification Of Cost, What Is A Business Situational Example of the ff:
A: Cost refers to the amount spent by the business on the purchase of raw materials, supplies,…
Q: Which of the following statements about CVP analysis is false? O a. Operating income calculations in…
A: CVP analysis estimates the how much the changes in a company's cost, both fixed and variable, sales…
Q: Practice 2: a: Define standard costs. b: under what conditions should previously established…
A: a. Standard costs are the estimated costs of the items, processes, products which are used in the…
Q: Activity Based Costing to report product costs in financial statements
A: Activity Based Costing is a costing method to allocate overheads to products or operations or jobs.
Q: Explain why the majority of businesses use full-costing systems whilst most management accounting…
A: Full Costing:- Full costing is a method of accounting where it accounts for all costs, both fixed…
Statement 2: Cost Accounting aims to reflect the correct complete financial picture/information of the entity to the different shareholders.
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- 1. State whether the following questions is True (T) or False (F): a. Cost accounting looks at the company as a whole and not at the various units, jobs or processes. b. Financial accounting is concerned with how and why profits arise. c. Cost accounting depends entirely on historical information.The statement of financial position and the balance sheet are synonyms. Select one: a. False b. True Refers to the recording, presentation, and analysis of manufacturing costs. Select one: a. No correct answer b. Financial Accounting c. Auditing d. Cost Accounting Accounting deals with quantifiable information. Select one: a. True b. FalseВ. Explain the following: Product costs and Period costs and one example of each. Distinguish clearly between Financial Accounting and Management Accounting under 3 (THREE) different factors, which are: i. Stakeholders, ii. Time frame and iii. Regulations. С. Before calculating costs we need to understand how different costs behave. In cost accounting we typically classify costs by three types of behaviour: Fixed costs - costs which don't change as the activity level changes Variable costs - costs which change in direct proportion to changes in the activity level Semi-variable costs- costs which have both fixed and variable elements. Explain the purpose classifying costs into the behavior patterns. D.
- 1-an accounting method that is used to predict profits. 2- costing method that assigns overhead and indirect costs to related products and services difine and explain this two methods , and explain the pros and cons for both methods ?1.An accounting system used to forecast earnings. 2.A costing method that determines the overhead and indirect costs of related products and services. Identify and explain the costing methods ..Explain the pros and cons of both methods.For external reporting purposes, costs must be classified into only three categories. (2) Cost of goods manufactured represents the cost of direct materials, direct labor, and overhead incurred during the current accounting period. a. BOTH statements are FALSE b. BOTH statements are TRUE c. 1st statement FALSE d. 1st statement TRUE
- Which of the following statements is/are FALSE: I. Because of the prudence convention, inventories are expensed in the income statement as cost of goods sold when they are sold, and not when they are bought in by the business and paid for. II. Investment property does not get depreciated, unless it is measured at cost. III. In the statement of comprehensive income, costs can be analysed according to function or nature. Costs analysed according to function are classified into the following categories: distribution & selling costs; administrative expenses; other operating expenses (or income). IV. A complete set of financial statements consists of the statement of financial position, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows. V. Following the acquisition of an item of property, plant and equipment, subsequent expenditure for this item that will extend the asset's useful life and increase the asset's capacity is capitalised.…Which of the following statements is/are FALSE: I. Because of the prudence convention, inventories are expensed in the income statement as cost of goods sold when they are sold, and not when they are bought in by the business and paid for. II. Investment property does not get depreciated, unless it is measured at cost. III. In the statement of comprehensive income, costs can be analysed according to function or nature. Costs analysed according to function are classified into the following categories: distribution & selling costs; administrative expenses; other operating expenses (or income). IV. A complete set of financial statements consists of the statement of financial position, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows. V. Following the acquisition of an item of property, plant and equipment, subsequent expenditure for this item that will extend the asset’s useful life and increase the asset’s capacity is…The definition of the cost is the collection of cost data in some organized way by means of an accounting system. Select one: True False
- Which of the following is one of the difference between management accounting and cost accounting. Select one: O a. Management accounting is based on double entry system but not cost accounting b. Management accounting used for decision making but cost accounting used for cost ascertainment O c. Management accounting is limited for internal use whereas cost accounting for external use d. Management accounting is optional but cost accounting is mandatory7. Which of the following statement is false? Multiple Choice a)The contribution margin income statement format separates costs according to cost behaviour. b)Fixed manufacturing overhead is treated as a period cost under absorption costing method. c)Fixed manufacturing overhead is treated as a product cost under absorption costing method. d)Variable costing method is more useful than absorption costing approach in internal and managerial decision-making. e)The absorption costing approach is used in external financial reporting.60. Statement 1: Cost Accounting relates to the conventional costing methods and techniques in accumulating the cost of a product, process, project or service, including both product and period cost in accumulating cost.Statement 2: Cost Accounting aims to reflect the correct complete financial picture/information of the entity to the different shareholders. a• Statement 1 is False, Statement 2 is True b• Statement 1 is True, Statement 2 is False c• Both statements are true d• Both statements are false