There are two (2) costing systems (techniques) that organizations use to budget for the operational/production costs; thus, Marginal Costing and Absorption Costing. The use of each system is dependent on the information needs of the business or organization. These costing systems use the same costs, but they are treated differently according to their behavior. Required: In a detailed manner, look at each of these costing systems and then make a comparison between them.

Q: Cost accounting provides management with a variety of cost classifications that can be used for…

A: The concept underlying the above question revolves around the importance of cost classifications in…

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: Absorption costing is: A. a good way to value inventories for the balance sheet. B. used for…

A: Absorption costing is an accounting method used to calculate the manufacturing cost of a product. In…

Q: Which of the following is false about activity-based costing?   Implementing an activity-based…

A: Activity-Based Costing (ABC): Under activity-based costing the different cost is assigned to a…

Q: The relevant range of activity costing is: Select one: O a. Is the cost that causes change in total…

A: Under activity costing, indirect costs or overhead are allocated to products or jobs on the basis of…

Q: Activity based costing is utilized by manufacturing companies that assist them in determining…

A: Machine setups, maintenance requests, power consumption, purchase orders, quality checks, and…

Q: The allocation of indirect costs in an activity-based costing system a. may require other costs to…

A: In ABC(Activity-Based Costing) costs are traced to specific activities (activity pools) within an…

Q: The first step in applying the activity-based costing method is a. Identifying the cost drivers b.…

A: Activity Based Costing: Activity-based costing is a costing method in which a company identifies…

Q: o alternatives for prod

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

Q: Matching Question: Match the following cost accounting objectives with their corresponding…

A: The question is related to Matching the correct cost accounting objectives.

Q: To better determine profit goals, activity-based cost (ABC) accounting, which tries to identify the…

A: ABC Is used in assigning both costs and overhead

Q: Which of the following statements about activity-based costing is not true? A. activity-based…

A: Activity-based costing can be defined as the method of assigning and allocating the overhead and…

Q: What is the difference between variable and absorption costing. How does these variable costing help…

A: Absorption costing is a costing mechanism where all the costs related to the production are assigned…

Q: Which of the following factors is NOT considered to have influenced the development of…

A: Activity-based costing is a method to allocate the overhead and indirect cost to products and…

Q: product-costing systems are structured on multiple volume-based cost drivers. True or False?

A: Traditional Product-costing system refers to the concept of cost allocation under which the the…

Q: activity -based costing over traditional volume -based allocation method

A: Definition: Activity Based Costing: The costing method which identifies the activities of an…

Q: Provide the justification why more companies are refining their costing system by using Activity…

A: The traditional costing system used by companies does not accurately reflect the true cost of…

Q: Employee training is an example of discretionary fixed costs. Select one: True False

A: Hi student Since there are multiple questions, we will answer only first question.

Q: What is meant by customer profitability analysis as it relates to activity based costing? Give an…

A: In determining the profitability of customer relationships through customer profitability analysis…

Q: Specify the cost behavior with the level of activity in an organization. Relate it with ABC costing…

A: Cost behavior is an indication of how a cost will change with the number of units for the activity.

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: ost accounting method assumes that the cost of production is driven by the number of units produced?…

A: The basic premise of ABC Costing is that each activity within an organization consumes resources,…

Q: Indicate whether the following statement is true or false, then support your view. By using a…

A: Traditional method of costing is the method of allocating overheads based on the single cost driver.…

Q: Activity Based Costing (ABC) is an alternative method for allocating costs to products by…

A: Activity based costing is also known as ABC COSTING . Traditional costing applies an predetermined…

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: ivity analysis, and how is it used with cost driver analysis to manage costs and increase profits?…

A: An organization might use activity analysis as a management tool to recognize and comprehend the…

Q: The concerns that encourage management to look at the life- cycle costing are? 1.Opportunity Costs…

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

Q: Cost allocation is a general term that refers to identifying accumulated costs with, or tracing…

A: Answer:- Cost allocation:- Identification, agglomeration, and assignment of costs to cost objects…

Q: Which of the following statements is true of ABC systems? A) ABC systems are time-driven cost…

A: Activity-based costing (ABC) is a method of assigning overhead based on activities, which are…

Q: Briefly explain how a traditional, volume-based product-costing system operates.

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: Discuss any two differences between the traditional costing system and the actively-based costing…

A: Traditional  Costing…

Q: Which type of income statements, Contribution Format or Traditional Format should be used to…

A: Contribution Format income statemnets should be used to identify relevant costs. A traditional…

Q: Which of the following is a benefit of activity-based cost management system? a.It makes it easy to…

A: Activity based costing is a method of allocating indirect costs to the products or services based on…

Q: Describe three different ways in which managers determine cost behavior, which do you think is most…

A: Cost behavior analysis: It is the investigation of how certain expenses carry on in a business.…

Q: Which of the following statements is not a characteristic of a target costing system? It is a good…

A: Target Costing is a cost management tool for producing overall cost of product over its entire life…

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.