Which of the following is true of abnormal spoilage? a. It is considered to be part of production.               b. It is normally treated as a period cost c. It is normally treated as a product cost.                 d. It is prorated between cost of goods sold and inventory.

Q: The cost of lost future sales after a customer finds a defect in a product is which type of quality…

A: a) Prevention costs: Prevention costs are incurred to avoid quality problems and are incurred to…

Q: All of the following are accurate regarding the treatment of normal or abnormal spoilage by a firm…

A: Spoilage: Spoilage is the defective item at intermediate or final stage. The spoilage goods cannot…

Q: Wrong classification of imported goods may lead to   a. Goods being shipped to wrong address. b.…

A: Solution: Custom duty rates on imports vary from product to product. Therefore it is necessary that…

Q: When is the material quantity unfavorable? A.When the actual quantity used is less than the…

A: Material quantity variance =(AQ-SQ)×SP Where as,  AQ = actual quantity used SQ = standard or…

Q: Identify the type of quality cost as per total quality cost concept: A.Lost profit from lost sales…

A: Total quality management has quality costs which are of four types namely, Prevention costs,…

Q: A by-product is best described as *   a. A product that s produced from materials that would…

A: By product is the product that is manufactured with the primary product but later on separated from…

Q: Briefly explain two factors that tend to result in product cost distortion under traditional,…

A: Traditional volume based product costing system is a costing system in which total factory overheads…

Q: Why costing procedure is different for spoiled or defective material?

A: Spoilage means loss occurred during the production. It occurs due to sub-standard material,…

Q: “In accounting for spoiled units, we are dealing with cost assignment rather than cost…

A: Explain the reason in accounting for spoiled units are done with cost assignment rather than cost…

Q: Does having a positive Contribution Margin always indicate that it is better to continue operations…

A: Contribution Margin is calculated by deduction variable costs from the sales revenue.

Q: What is meant by the statement, ‘‘Inventories camouflage production problems and can cause…

A: Production: Production activity consist use of fixed and variable resources to produce final…

Q: Which of the following is NOT a problem associated with standard cost accounting? a. Standard…

A:

Q: Classify each of the following items as a cost, expense, loss, or other category, and explain how…

A: Cost of goods sold Cost of goods sold (COGS) refers to the direct costs of producing the goods sold…

Q: As a result of cost distortion, some products will be overcosted while other products will be…

A: Solution: Cost distortions occurs when the overhead costs are not properly allocated,  when the…

Q: 1. Differentiate the treatment of spoilage using the First-in First-Out versus the weighted average…

A: Inventory management refers to the collection of tools, techniques, and strategies for storing,…

Q: The First- In- First- Out method, which is mainly utilized to assign the average cost of production…

A: First in first out (FIFO) is one of the method of inventory valuation, under which inventories which…

Q: Problem 10 Indicate the effects of the following errors on cost of goods sold and net income.

A: Cost of Goods sold = Opening stock + Purchases - Closing stock Net income = Sales - Cost of goods…

Q: An example of an appraisal cost would be: O Scrap O Process or product design O Product recalls O…

A: Cost of Good Quality is incurred in order to reduce the Cost of Poor Quality, so that overall Cost…

Q: All of the following are accurate regarding the treatment of normal or abnormal spoilage by a rm…

A:

Q: Inventory cost is least likely to include:A. production-related storage costs.B. costs incurred as a…

A: Transportation costs incurred to ship inventory to customers are an expense and may not be…

Q: Which of the following statements is not true regarding the use of variable and absorption costing…

A: Absorption costing: It refers to the method of product costing in which the price of the product is…

Q: The cost accounting system that significantly reduced inventory-carrying costs is called:

A: Just-In-Time Purchase system: A just-in-time (JIT) inventory system is a business approach that…

Q: 2- Which of the following is a product cost as it relates to inventory? a. Selling costs. b.…

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

Q: The cost of is not included in the cost of production a. Abnormal loss b. Direct costs c. Normal…

A: Cost of production: Cost of production may be defined as the aggregate of all the costs incurred to…

Q: as they are removed from the joint-processing center, what value will be assigned to by-products…

A: A by-product is a product that is a small outcome of a production process and has minimal sales,…

Q: If there is an increased in the inventory of finished goods during the period, then:     a. Cost of…

A: Cost of goods manufactured represents the total manufacturing cost of the goods produced during the…

Q: Abnormal spoilage is properly classified as a. deferred charge b. extraordinary item c. period…

A: Abnormal Spoilage is considered as a period cost. ... Because abnormal losses are not necessary to…

Q: Which of the following statements is not true regarding the use of variable and absorption costing…

A: Answer:   Option d.

Q: Which of the following statements related to the application of the lower of cost and net realizable…

A: Option B is correct

Q: Leah Clement believes that the allocation of cost of goods available for sale should be based on the…

A: Cost of Good Sold: Cost of goods sold (COGS) refers to the direct costs of manufacturing the…

Q: What adjustment is made for underapplied overhead on the schedule of cost of goods sold? What…

A: Overhead cost: The costs other than the direct costs such as insurance, interest, repairs, taxes…

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: Which of the following would not be considered a cost ofquality?a. Lost sales due to bad publicity…

A:

Q: While discovering gross benefit under ingestion costing, just that part of    producing overheads…

A: Ingestion costing considers all manufacturing costs, it includes both direct and indirect…

Q: What features of the cost accounting system would be expected to prevent the omission ofrecording…

A: Cost accounting is the branch of Accountancy associated with the cost of materials used in the…

Q: Whether any of the following sentences about abnormal spoiling is true? a. It is considered to be…

A: Spoilage refers to materials or components that have been damaged, which are beyond the capacity of…

Q: Which of the following may not be the reason for a change in gross profit to occur? a. Increase of…

A: In the given case any changes made in the manufacturing process that is raw material,wages and…

Q: uestion: The total cost of spoilage chargeable to Revenue is (recognized as expenses) and the total…

A: Equivalent units concept is used when opening or ending work in progress is not 100% complete but…

Q: 2. Explain the arguments for the use of traditional absorption costing rather   than marginal…

A: 1.  Variance analysis can be summarized as an analysis of the difference between planned and actual…

Q: Gross profit variance analysis can be used to study the effect of:  a. Changes in volume of goods…

A: Gross profit variance analysis is referred as the measurement tool used to measure the capability of…

Q: The type of process loss that should not be allowed to affect the cost of good units is called? a.…

A: Process costing is one of the method of cost accounting, which is used in industries where product…

Q: What is cost per equivalent unit for material using weighted average? What is the cost assigned to…

A: In process costing, some units are not completed and consumed a portion of cost only so the…

Q: When overhead is overapplied, is the balance of Cost of Goods Sold, before adjustment, too low ortoo…

A: The cost of goods that have been sold in a particular period are known as the cost of goods sold…

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.