True or False Cost and managerial accounting are not the same things

Q: explain why GAAP requires full absorption costing (instead of variable costing) if absorption…

A: Introduction:- i)Absorption costing:- Under the absorption costing, The following costs included in…

Q: Give three examples of opportunity costs that typically are not recorded in accounting systems,…

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Q: Traditional accounting systems record only actual transac-tions. As a result, how can opportunity…

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: Managers often assume a strictly linear relationship between cost and the level of activity.Under…

A: There are 3 main types of cost: a. Variable cost b. Fixed cost b. Mixed Costs Variable costs are…

Q: For what purpose should the managerial accountant be careful to not use joint cost allocations?

A: Joint costs: The total costs incurred prior to the split-off point, where the joint products are…

Q: Sunk costs are ignored in decision making but information about sunk costs are usually found in the…

A: Sunk Cost refers to the expenditure incurred by the organization where there is no scope to recover.…

Q: For what decisions is the manager of a cost center not responsible?

A: Responsibility of Cost Centre Manager The main responsibility of the cost center managers to…

Q: Managers often assume a strictly linear relationship between cost and the level of activity.How can…

A: The managers often assume the strictly linear relationship between the cost and the level of…

Q: “Management accounting deals only with costs.” Do you agree? Explain?

A: Management accounting is wide field which encompasses cost computation, pricing analysis,process…

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: Which of the following is NOT true about the cause-and-effect criterion when estimating a cost…

A: The cause and effect analysis is one of the factors for making cost allocation decisions. The cost…

Q: Why do managers consider direct costs to be more accurate than indirect costs?

A: Cost: Cost refers to the expense incurred by the business to earn revenue from sales. In other…

Q: Why can full cost accounting lead to wrong management decisions?

A: Full cost accounting says that total costs of the product either it is fixed costs or it is variable…

Q: What of the following is NOT a Benefit of Activity Based Management? a.It assists in the budgeting…

A: Introduction:- Activity Based Management analyzing a company's business activities through…

Q: What makes POS systems different from revenue cycles of manufacturing firms?

A: POS System:   It is a system implemented in rattail sectors where the sale transaction taking place…

Q: Some costs that possibly could be traced directly to cost objects are nonetheless classified as…

A: Indirect costs are those costs which cannot be traced or is not cost effective to trace the costs…

Q: Accounting systems that use standards for product costs are called budgeted cost systems.

A: Accounting systems that use standards for product costs are called standard cost systems.

Q: Describe the concept of management by exception and explain how standard costs help managers apply…

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Q: How do cost management and financial accounting differ?

A: The accounting is a process to identify, classify and record the transactions of the business and…

Q: without and effective system of cost accounts it is doubtful whether can survive in the intensely…

A: Cost accounting is the accounting of cost which collects all data from different sources and after…

Q: Demonstrate why expressing fixed costs on a per unit of activity basis is misleading and may result…

A: Companies can have two types of costs, fixed costs and variable costs, which together result in…

Q: How cost accounting is useful where financial accounting could not be answered. Give any exampleto…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Which of the following is not a function of Cost Accounting? a. Control cost b. Reporting to owners…

A: Solution: "Reporting to owners"  is not a function of Cost Accounting. This is because the functions…

Q: Salary paid to administration staff is an example of a direct cost. TRUE or FALSE?

A: Direct cost: Direct cost is the cost which is directly related to production process.  Indirect cost…

Q: What circumstances might create distortions where estimated costs are not an accurate representation…

A: The estimated costs are the costs determined through the estimation process on past…

Q: Cost Accounting don’t disclosure the information? True Flase

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: i). How cost accounting is useful where financial accounting could not be answered. Give any example…

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

Q: Why do managers assign different costs to thesame cost objects?

A: A cost object can be defined as something to which the management feels the need to separately…

Q: Discuss how an emphasis on financial performance of cost centers, as measured by traditional cost…

A: Cost Accounting System:   Cost accounting system can be defined as a framework designed by the…

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: Direct costs are classified by controllability.    True False Can be true, can be false

A: Direct costs are those costs which are directly incurred for purchase or production of goods in the…

Q: Direct Expenses of a Department are ordinarily considered to be uncontrollable costs. TRUE FALSE

A: A department's direct expenses are usually considered as Controllable costs, since an entity would…

Q: In activity-based costing, some manufacturing costs may be excluded from product costs TRUE FALSE

A: Lets understand the basics. Activity based costing is as the name suggest allocate cost based on the…

Q: a cost that is irrelevant when making managerial decision O fixed cost O opportunity cost O…

A: Cost means the amount spent on doing some business or activity.

Q: Explain why some management accountants believe that absorption costing may provide an incentive for…

A: Absorption costing Absorption costing is an accounting method which helps in computing the total…

Q: Statement 1: Cost Accounting relates to the conventional costing methods and techniques in…

A: Cost accounting is a branch of accounting which focuses mainly on production related activities.

Q: To make predictions about costs and income, you must first classify costs by their behavior.…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Indirect cost is the cost that cannot be directly attributed to the production as these costs are…

A: Cost is the amount incurred in the regular course of the business. It may be direct or indirect.

Q: Where management's bonuses are tied to profit-based performance measures, management may have an…

A: Return on assets is a profit-based performance measure, when the value of assets increases the…

Q: A cost object indicates how costs are related or identified. O FALSE O TRUE

A: Given, A Cost object is a term in cost accounting which is used to assign the cost.