Accounting Information Systems
11th Edition
ISBN: 9781337552127
Author: Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher: Cengage Learning
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Chapter 15, Problem 11DQ
Summary Introduction
To determine: The changes in the diagram if the firm used an actual costing process instead of a
Introduction:
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Students have asked these similar questions
19) For internal decision-making purposes, many companies use the income statement using the
approach. For extemal reporting, most companies use the income statement using the
approach.
A) full costing: variable costing
C) absorption; contribution
B) contribution; absorption
D) absorption; absorption
Which of the following would not be a period cost?
Group of answer choices
Sales commissions.
Accounting costs.
Sales salaries.
Tamper-proof packaging.
Legal costs.
29) Companies need to engage in target costing....
only if costs are primarily variable.
at the beginning of an accounting period.
before introducing a new product.
at the end of a product’s lifecycle.
Chapter 15 Solutions
Accounting Information Systems
Ch. 15 - Prob. 1RQCh. 15 - Explain the three key drivers of complexity in...Ch. 15 - Describe the three key characteristics of...Ch. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQ
Ch. 15 - Prob. 11RQCh. 15 - Prob. 12RQCh. 15 - a. How are a bill of materials (BOM) and a routing...Ch. 15 - Prob. 14RQCh. 15 - Prob. 15RQCh. 15 - Prob. 16RQCh. 15 - Prob. 17RQCh. 15 - Prob. 18RQCh. 15 - Why is inventory management and control important...Ch. 15 - Prob. 21RQCh. 15 - Prob. 1DQCh. 15 - Prob. 3DQCh. 15 - What industry do you believe is a leader in...Ch. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - In addition to the industries mentioned in...Ch. 15 - A main goal of JIT is zero inventories. a. Assume...Ch. 15 - Prob. 11DQCh. 15 - Discuss how the inventory process supports the...Ch. 15 - Prob. 13DQCh. 15 - Prob. 14DQCh. 15 - Prob. 1SPCh. 15 - Prob. 2SPCh. 15 - Prob. 3SPCh. 15 - Prob. 4SPCh. 15 - Prob. 5SPCh. 15 - Study Figure 15.8, showing the level 0 DFD of the...Ch. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - Prob. 5PCh. 15 - Prob. 6PCh. 15 - Prob. 7P
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Which of the following statements is true? a. Activity based costing can be used in service companies b. None of the given answers is correct. O c. Activity based costing (ABC) can be used for external reporting. d. Traditional costing cannot be used for internal reporting. O e. A company can either choose Activity-based costing (ABC) or the traditional costing system to allocate its costs for external reporting. е.arrow_forwardThe following statements refer to organisations that use service costing:(i) The service provided will be a homogenous product.(ii) The cost of materials is relatively small compared to labour, expenses and overheads.(iii) A problem with service costing is the difficulty in defining a realistic cost unit.(iv) Inventory levels are generally high in-service costing industries.Which of the above statements are correct?a) (i) and (ii)b) (ii) and (iii)c) (ii) and (iv)d) (i) and (iv)arrow_forwardThe following statements refer to organisations that use service costing: (i) The service provided will be a homogenous product. (ii) The cost of materials is relatively small compared to labour, expenses and overheads. (iii) A problem with service costing is the difficulty in defining a realistic cost unit. (iv) Inventory levels are generally high in-service costing industries. Which of the above statements are correct? a) (i) and (ii) b) (ii) and (iii) c) (ii) and (iv) d) (i) and (iv)arrow_forward
- If an income statement is prepared as an internal report, under which of the following methods would the term gross margin most likely appear? Question 10 options: a) Both absorption costing and variable costing. b) Absorption costing but not variable costing. c) Variable costing but not absorption costing. d) Neither variable costing nor absorption costingarrow_forwardPlease explain the statement below (T/F) thoroughly with examples illustrating the answer. "In activity-based costing, a product margin may exclude costs from some of the company’s activity cost pools."arrow_forwardWhat are the Costs per unit of Alfa and Beta under traditional and ABC costing systems? What would be the prices of Alpha and Beta traditional and ABC costing systems? Compare the costs and prices calculated in the two systems. Please write down the calculation process!thanks!!!arrow_forward
- As we have discussed in previous chapters, product costs are made up of Direct Materials, Direct Labor and Manufacturing Overhead. In making a decision as to whether we should outsource the production of a product, do we take all of the product costs into consideration or do we make adjustment based on the type of cost behaviors? Please give examples.arrow_forwardWhich of the following statements is not a characteristic of a target costing system? It is a good system to compare the cost of your products with that of your competitors Assists with ensuring that a business can achieve its desired profit levels Focuses on cost reductions after the product has been designed Focuses on the manufacturing processes to see if improvements can be made from a cost perspective.arrow_forward1. Multiple-Choice Question - FIFO When using FIFO, A) Identical costs go to the balance sheet and the income statement. B) Management uses average costs to assign to the balance sheet and the income statement. C) Older costs go to the income statement; newer costs go to the balance sheet. D) Older costs go to the balance sheet; newer costs go to the income statement. Explain for the answer chosen please.arrow_forward
- Which of the following statements is false? Multiple Choice Examples of selling costs include shipping, sales commissions, and costs of finished goods warehouses. Discretionary fixed costs may be altered in the short term by current managerial decisions. A particular cost may be direct or indirect depending on the cost object. All sunk costs should be ignored in making a decision. Some of the conversion costs are period costs.arrow_forwardPractice 2: a: Define standard costs. b: under what conditions should previously established standard costs be revised? c: explain why the determination of standard cost amounts should not be the sole responsibility of a company's cost accountant.arrow_forwardPlease explain the statement below (T/F) thoroughly with examples illustrating the answer. "To compute a product’s profit or product margin, the product’s sales and direct costs are needed in addition to the overhead costs computed in an activity-based costing system."arrow_forward
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