1.Choose all of the following statements that are true. a. Opportunity costs and sunk costs are not reflected on a firm's financial statements. b. Direct costs are manufacturing costs; indirect costs are non-manufacturing costs. c. Variable costs are always relevant to a decision.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
1.Choose all of the following statements that are true.
a.
b. Direct
c. Variable costs are always relevant to a decision.
d. Under absorption costing, when a firm increases production, but has the same amount of sales, cost of goods sold decreases.
e.
2.Which of the following are true about cost behavior within a particular relevant range? (Choose all that apply.)
a. Variable costs per unit increase as a company produces more units of production.
b. Total fixed cost is constant over all units of production.
c. Fixed costs per unit decreases as a company produces less units of production.
d. The slope of total variable costs is positive over increasing levels of production.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
