1.- A limitation of using the physical output method in allocating joint costs to joint products is that it treats low-value products that are large in size as if they were valuable. II.- Joint costs include direct materials, direct labor, and manufacturing overhead. * Only statement II is true O Only statement I is true Both statements are false O Both statements are true

Q: Select all that apply Differential cost is Blank ------ between two alternatives the same as…

A: Differential cost analysis is used to choose one alternative from 2 alternatives. It is for decision…

Q: While none of the four common methods for allocating joint costs will consistently allocate joint…

A: The correct answer is:  True  It depends on the production process and the specific cost allocation…

Q: Which of the three methods for allocating costs of products can lead to significant product cost…

A: Three methods for allocating cost of product is: 1) Single Plant wide factory overhead rate 2)…

Q: When management believes that there is a direct link between the joint costs incurred and the value…

A: sales value at splitoff method is used when there is direct link between the joint costs incurred…

Q: True (t) or False (f) ______ LIFO is inappropriate where unit costs tend to decrease as production…

A: It is known as LIFO conformity rule that if a company used LIFO for tax purpose then it must also…

Q: Management Accounting) If fixed production costs are not allocated to manufactured products, this…

A: SOLUTION FIXED COST INCLUDES THE RENT OR MORTGAGE PAYMENT YOU PAY FOR YOUR FACTORY AND OFFICE…

Q: Define incremental cost, opportunity cost, and sunk cost. How do these costs impact decision-making?…

A: Incremental Cost: Incremental cost is the additional cost incurred to produce one additional…

Q: The total cost of a cost object can only include the direct costs that are directly traced to that…

A: The total cost of a cost object includes both costs i.e costs that are directly traced and…

Q: not use ai please

A: Step 1: Determine Net Realizable Value (NRV) of each productFirst, compute the Net Realizable Value…

Q: Which of the following statements about the use of relevant cost analysis in decision making is…

A: The Cost  play an important role in decision making because it is concern with all the decisions…

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: A possible disadvantage of the ABC method is: (a) It does not allocate costs to the way production…

A: Definition:   Activity-based method (ABC): The costing method which allocates overheads to the…

Q: Which of the following statements are true? 1. The sum of all manufacturing costs except for direct…

A: The manufacturing costs also called product cost includes direct materials, direct labor and…

Q: Managers use various names for indirect manufacturing costs. Common terms include blank)

A: Manufacturing overhead is a type of operational cost that's not directly related to a facility's…

Q: Dec. Monica's Cleaning Service began operations by receiving $30,000 cash and 1 cleaning equipment…

A: Trial balance: - Trial balance is the statement prepared by the company with the debit and credit…

Q: Variable Costing differs from Full Absorption Costing in that it applies: A. all fixed and variable…

A: Variable costing is a cost accounting method where only variable manufacturing costs, such as direct…

Q: 8) A single indirect-cost rate distorts product costs because A) there is an assumption that all…

A: Answer : Option A " There is an assumption that all support activities affect all products in a…

Q: Prime cost equals product cost less direct labor True or False True False

A: Prime costs are all expenses that can be directly linked to the manufacture of each good. The…

Q: Why do product-costing systems based on a single, volume-based cost driver tend to over-cost…

A: Single volume-based cost driver means the basis of allocation of costs to particular products using…

Q: In which scenario would an adjusted sales value be used to assign costs? a. If abnormal losses…

A: Joint products refer to the products which are produced simultaneously as their raw material is the…

Q: 'Direct costs are treated differently under the ABC method than under the traditional full costing…

A: Costs consists of two main types – direct costs and indirect costs.   Direct costs include costs…

Q: For joint cost allocation: only the net realizable method can be used to allocate joint costs to…

A: Joint Cost Allocation This is generally manufacturing cost which is in joint production process and…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.