2. Matching Activity with Cost DriversFor each cost pool below, identify an appropriate cost driver.a. order departmentb. accounts receivable processingc. cateringd. raw material inventory a. conversion costsb. cost of goods soldc. cost of production reportd. cost per equivalent unite. equivalent units of productionf. manufacturing departmentg. prime costsh. transferred out costsi. total of direct material costs and direct labor costsii. manufacturing costs of the items soldiii. number of units produced if each unit was produced sequentiallyiv. total of direct labor costs, indirect labor costs, indirect material costs,and manufacturing overheadv. where costs in a process cost system are reported before being appliedto the productvi. detailed listing of the total costs of the product including the value ofwork in processvii. cost of materials or conversion for a specific department duringproductionviii. product of the total cost per unit and the number of units completedand transferred during the time period

A cost driver is a factor that determines or influences the cost of an activity or process. It is a…

Answered: 2. Matching Activity with Cost Drivers…

2. Matching Activity with Cost Drivers For each cost pool below, identify an appropriate cost driver. a. order department b. accounts receivable processing c. catering d. raw material inventory

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Cost accounting provides management with a variety of cost classifications that can be used for…

A: The concept underlying the above question revolves around the importance of cost classifications in…

Q: Which of the following costing systems assigns actual costs of materials to inventory? a.normal…

A: A costing system is designed by a company to monitor the costs incurred by the company.

Q: In the blank next to the following terms, place the letter A through D corresponding to the best…

A: Cost: It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: Distinguish between program service expenses and supporting service expenses.

A: A nonprofit organization’s expenses can be classified into two types, they are expenses for program…

Q: A system for accumulating detailed information about the cost of producing a product is known as a…

A: In accounting, there are several branches or systems for use. These are financial accounting,…

Q: . Which of these forms has additional lines for overhead application? a.Work-in-process inventory…

A: Overhead application refers to the assignment of the costs of factory overhead to the produced units…

Q: Differences between a job order cost system and a process cost system include all of the following…

A: Job Order Cost System and Process Cost System are two different costing methods used in managerial…

Q: Consider the following statements concerning activity-based costing. 1. Cost pools are linked to…

A: 1. The correct answer is: (D) Total life cycle costing. While Kaizen costing and total life-cycle…

Q: Which of the following are the two main types of cost accounting systems for manufacturing…

A: The two main types of cost accounting systems for manufacturing operations are:Job order costing…

Q: The four-steps of tracking product costs in a process costing system are OA. accumulate, assign,…

A: A process costing system is the system which is used by the company to account the costs of a…

Q: The ABC system improves the allocation of ________. A. direct materials B. sales commissions…

A: ABC system: Activity based cost system is widely used in the manufacturing industry. Under this…

Q: When products and their costs are moved from one process to the next process, these costs are…

A: Process costing is a method of costing used to ascertain the cost of a product at each stage or…

Q: Ans.

A: Step 1: Question 1 a. unit-level cost.Explanation for correct option:Unit-level cost: These are…

Q: Shipping of Costs for a Shipping Department

A: What is shipping and handling? Shipping and handling is the process of preparing and packing an…

Q: Which of the following is not a product-level activity? A. Product design B. Engineering changes C.…

A: Product level activities are those things and activities which are usually done at product level.…

Q: Define Work-in-process inventory.

A: Definition: Inventory refers to the raw materials, work-in-process, and the finished goods…

Q: Activity-based costing first assigns costs to a. Products b. Activities c. Overhead d. Departments

A: Activity based costing is a type or form of costing which is useful for overheads allocation to…

Q: What are fictional assets, and how do they work?

A: Asset is such resources that has future benefits. It has two types:- tañgible , intangible.…

Q: Use T-accounts to showthe flow of costs in ajob-order costing system.

A: Every industry maintains different inventory accounts and every industry can use job order costing.…

Q: In process cost accounting, the costs of direct materials and direct labor are charged directly to…

A: The correct option with all necessary explanation are as follows

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

2. Matching Activity with Cost Drivers

For each cost pool below, identify an appropriate cost driver.

a. order department
b. accounts receivable processing
c. catering
d. raw material inventory

a. conversion costs
b. cost of goods sold
c. cost of production report
d. cost per equivalent unit
e. equivalent units of production
f. manufacturing department
g. prime costs
h. transferred out costs
i. total of direct material costs and direct labor costs
ii. manufacturing costs of the items sold
iii. number of units produced if each unit was produced sequentially
iv. total of direct labor costs, indirect labor costs, indirect material costs,
and manufacturing overhead
v. where costs in a process cost system are reported before being applied
to the product
vi. detailed listing of the total costs of the product including the value of
work in process
vii. cost of materials or conversion for a specific department during
production
viii. product of the total cost per unit and the number of units completed
and transferred during the time period

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Definition-Cost driver

VIEW

Step 2: Answer

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Identify the documentsused in a job-order costingsystem.
For each of the following support departments, identify a cost driver that could be used for allocating the support department costs to the profit center:a. Legalb. Duplication servicesc. Electronic data processingd. Central purchasinge. Telecommunicationsf. Accounts receivable
Explain why unit cost is important in the task order costing method.
Which of the following are the two main types of cost accounting systems for manufacturing operations? Oa. a. job order cost and process cost systems Ob. process cost and general accounting systems Oc. process cost and replacement cost systems Od. job order and general accounting systems
: Use T-accounts to show the flow of costs in g system Which accounts are the inventory accounts? (check all that apply) Direct Labor Raw Materials Work in Process Partially Finished Goods Finished Goods Cost of Goods Sold SUBMIT
QUESTION 9 Put the following steps in an Activity-Based-Costing system in the proper order. v Calculate a predetermined overhead rate. Identify a logical cost driver as an allocation base for each cost pool. Allocate the costs to the cost object by multiplying the predetermined overhead rate by the actual amount of the cost driver used by the cost object. v Separate total overhead into cost pools.
in the process costing the main goal in accounting for cost is to .......... product cost
Define and explain cost accounting system
Which of the following are steps in process costing? Question 5 options: A) Visualize the physical flow of units B) Calculate the equivalent units C) Determine the per-unit costs D) Calculate the Cost of Goods Manufactured and the Ending WIP Inventory E) All of the above
ABC costing attempts to: O A. classify as many costs as indirect costs as is feasible. OB. identify the activities involved in a process. create as many cost pools as possible. O C. O D. seek a lesser level of detail.
Standard cost are used primarily for: Estimating future costs. To produce financial statements for external users. To judge the performance of accounting managers. To judge the performance of managers involved in the manufacturing process.
Provide a description of how the job order costing and process costing methods are applied to determine accurate cost data.