10- The direct costs are: a. apportioned to products/centres b. absorbed by products c. traced to products d. allocated to products
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Q: Which of the following is the best definition of product costs? a. Product costs are those costs…
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A: Responsibility accounting reports activities that are in control by the management.
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A: Traditionally indirect cost like overheads were distributed to end products on the assumption that…
Q: Question 2 Direct costs: are incurred to benefit a particular accounting period. are incurred due to…
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A: Selling expenses means the expense incurred while selling the goods like sale men commission , sale…
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A: In activity based costing the cost are apportioned based on the respective cost drivers
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A: In activity based costing, the overhead cost is allocated on the basis of the level of activites…
Q: Select which of the following requires a separate measurement of cost. a. Activity b. Volume c.…
A: Solution: A cost object is anything for which a separate measurement of costs is desired.
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A: Product cost means the cost of producing one unit of finished goods.
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Q: Which among the following cost encourage management to focus on life cycle costing? a. Warranty…
A: All of following cost encourage management to focus on life cycle costing:: Warranty…
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A: Solution A unit cost is a total expenditure incurred by a company to produce , store and sell one…
Q: Under variable costing, all fixed manufacturing costs are treated as a a. product cost included in…
A: Product costs are costs incurred in the manufacturing of products during the period. Example:-…
Q: 9- The direct costs are: a. apportioned to products/centres b. absorbed by products c. traced to…
A: Cost is normally categorised as a direct cost and indirect cost. Direct costs are those cost that is…
Q: 6- Absorption costing makes an apportionment of indirect costs so that the products absorb these…
A: There are two types of costing methods that are being used in cost accounting. One is absorption…
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- 3 15. An income statement is prepared as an external report. Under which of the following would the term gross profit appear? Full costing Variable costing а. No No b. No Yes с. Yes No d. Yes Yes 16. Which of the following must be known about a production process to institute a direct costing system? a. The variable and fixed components of all costs related to production. b. The controllable and uncontrollable components of all costs related to production. c. Standard production rates and times for all elements of production. d. Contribution margin and break-even point for all goods in production. 17. What will be the difference in net income computed using direct costing as opposed to absorption costing if the ending inventory increase with respect to the beginning inventories in terms of units? a. There will be no difference in net income. b. Net income computed using direct costing will be higher. c. The difference in net income cannot be determined from the information given. d.…Question Content Area The approach that requires the transfer price to be less than the market price but greater than the supplying division's variable costs per unit is called the _____ approach. a.negotiated cost b.cost price c.standard cost d.market priceWhen materials costs differ significantly among products in a value stream, the valuestream product cost is calculated by which of the following?a. Unit Materials Cost + Value-Stream Costs/Units Shippedb. Unit Materials Cost + Value-Stream Conversion Costs/Units Shippedc. Value-Stream Costs/Units Producedd. Value-Stream Costs/Units Shipped
- Support department costs are applied to products as a part of a.fixed manufacturing costs b.fixed selling and administrative expenses c.variable cost of goods sold d.overheadWindsor Company reports the following costs and expenses in May. Factory utilities Depreciation on factory equipment Depreciation on delivery trucks Indirect factory labor Indirect materials Direct materials used Factory manager's salary From the information: (a) Manufacturing overhead $ LA $18,700 15,370 5,140 60,120 98,240 168,880 10,600 Office supplies used Determine the total amount of manufacturing overhead. Direct labor Sales salaries Property taxes on factory building Repairs to office equipment Factory repairs Advertising $84,680 56,020 3,050 1,670 2,440 18,300 3,1607. How is direct material cost per equivalent unit calculated?
- Which of the following is NOT correct about the classifications of costs? Select one: a. On the basis of time of computation, costs are classified into historical costs and pre-determined costs. b. Costs are classified as product costs or period costs according to their behaviour with respect to physical capacity usage of the company. c. Costs are classified into direct costs and indirect costs on the basis of their identifiability with cost units or jobs or processes or cost centres. d. Costs behave differently when level of production rises or falls, and based on this, the costs are classified as fixed, variable, or mixed costs.3.Activity based costing (ABC) is a method of allocating the indirect costs of sales commissions to products. A. true b. false25. Which of the following major activities of a business will result in product costs? A. Marketing. B. Customer support. C. General administrative. D. Manufacturing. knowlto
- Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year 60 24 24 $ 528,000 22 8 $4 $ 105,000 11 la. Assume the company uses absorption costing. Determine its product cost per unit. Absorption costing Per unit product cost using:Q.1.2 The direct method as used by Ultimate Manufacturers is one method that can be used to re-assign service department cost. Discuss two other methods that can be used to re-assign service department overheads.
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