“A component part should be purchased whenever the purchase price is less than its total manufacturing cost per unit.” Do you agree? Why?

Q: When making outsourcing decisions, which of the following is true? a. Expected use of the freed…

A: When making decision on make or buy decision or which are otherwise called as Outsourcing decisions,…

Q: Briefly describe the treatment of Joint Costs when making a sell-or-process-further decision. What…

A: Joint costs are the costs which are incurred jointly in the production process for two or more…

Q: Why are support department costs difficult to apply to products?

A: Given: The difficulty in applying the support department costs on products.

Q: *check the attached photo for the problem REQUIRED: What is the total cost per unit?

A: Gigi decided to make chicken and rice to sell, it is necessary to decide the cost per unit.

Q: Is corrective action always necessary when actual costs are higher than standard costs

A: A company which manufactures products and goods keeps a sharp eye on its costs. When the actual cost…

Q: Of the various methods used to allocate joint costs, which makes the most sense to you?

A: In accounting a joint cost is referred to as that cost that is related to more than one product.…

Q: If the units produced exceed the units sold, which method would you expect to show the higher net…

A: Variable Costing: Variable Costing takes into account only variable manufacturing costs for…

Q: Which of the following is an example of an indirect cost? Multiple Choice Cost of labor Cost of…

A: Indirect Cost are expenses other than direct expenses are known as indirect  expenses. These cannot…

Q: 1. How will you allocate the fixed costs across the products?

A: Break-even refers to covering all the costs without making a profit. At break-even point company…

Q: A by-product is best described as *   a. A product that s produced from materials that would…

A: By product is the product that is manufactured with the primary product but later on separated from…

Q: The following costs arise in relation to production of a new product: (i)   Research and…

A: Lifetime cost of product includes total cost incurred over it's life time from designing,…

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: What is the difference between whole units to be accounted for and whole units to be assigned costs?…

A: Difference between whole units to be accounted for and whole units to be assigned costs The whole…

Q: What is the danger in allocating common fixed costs among products or other segments of an…

A: The costs which are not allocated to any specific segment in the business organization are called…

Q: Define prime cost and conversion. Why can't prime cost prime cost be added to conversion cost to get…

A: Classification of costs is important to arrive at per head cost. It helps the management to take…

Q: When deciding whether to make or buy a component part, the most relevant consideration is often:…

A: “Make or Buy” refers to decision made by firm whether to manufacture that product within premises or…

Q: In make-or-buy decisions for a part for a product, relevant costs include ________. A) some…

A: Make-or-buy decisions for a part of a product: The company has many options to choose from like…

Q: .what is the estimated selling price of a product less any cost necessary to further process the…

A: The cost necessary to further process the products beyond the split of point is also known as…

Q: What are the arguments in favor of treating fixed manufacturing overhead costs as product costs?

A: Following are the arguments in treating fixed manufacturing overhead costs as product costs: For…

Q: Electirical costs to light the production facility, is it a indirect material or direct material?…

A: Direct material: Material which is used in manufacturing process and also inseparable from the…

Q: Which of the following items would be relevant in the decision of buying a component part instead of…

A: Make or buy decision is the one that helps the entity to choose one alternative for the goods. In…

Q: The opportunity cost of making a component pa there is no alternative use is: the variable…

A: Solution: The opportunity cost of making a component part in a factory with excess capacity for…

Q: In Make or buy decision ,irrelevant costs are :  Select one: a. manufacturing costs that will be…

A: Under make or buy decision, decision needs to taken whether we should manufacture the product or…

Q: Which of the following is true for a make or buy decision? * O The reliability of the outside…

A: solution Make or buy decision               Make or buy decision means the decision taken regarding…

Q: How do I verify that Harlows actual cost figures are correct?

A: Total Cost=Direct material+Direct labor+Variable Overhead+Fixed Overhead

Q: When deciding whether to sell as is or process a product further, managers should ignore which of…

A:

Q: Which costing system would be more efficient when direct materials and direct labor costs are high,…

A: There are mainly two types costing method Traditional costing Activity based costing

Q: carrying cost?

A: Which one of the following is a carrying cost Correct answer :-  Cost of obsolescence.

Q: How do fixed costs create difficulties in costing units of product

A: Fixed costs are the costs that do not tend to fluctuate with change in production levels in the…

Q: 1. Select two decisions-one common to a manufacturer and the other common to a service…

A: Manufacturing Entity: A manufacturing business is defined as any firm that manufactures completed…

Q: As a general rule of​ economics, companies should only produce and sell units as long as​ ________.…

A: As a general rule of​ economics, companies should only produce and sell units as long as​ the…

Q: What are three factors causing reductions in the cost to place purchase orders for materials?

A:

Q: In manufacturing a product, if the per-unit cost of direct materials is decreased, what effect will…

A: Decrease  in material  cost result  in Decrease  in variable  cost

Q: uantity order to reduce the overall cost is usually stated as EOQ. why it is related to one time…

A: Step 1   Economic order quantity (EOQ) is the ideal order quantity a company should purchase to…

Q: Which of the following is not a qualitative factor that Atlas Manufacturing should consider when…

A: A make-or-buy decision is a strategic choice made by the management between producing an item…

Q: What kinds of challenges occurs in the Cost Control and Cost Reduction in the Manufacturing conce

A: Cost Control is different from cost reduction Cost Control focuses/emphasizes on decreasing the…

Q: ABC generally causes the least amount of cost distortion among products because indirect costs are…

A: Activity-based costing (ABC): Activity-based costing refers to the method of costing where the…

Q: Company A is currently manufacturing a component but is considering buy reliable supplier. Which of…

A: The avoidable fixed cost is the cost that does not change with the output but can be avoided in…

Q: Which of the following is unlikely to be classified as a fixed cost with respect to the number of…

A: It is cost that does not change with the change in production volume. The fixed costs remain…

Q: What is the differential cost to produce product Zeta?

A: Given information is: Cost of producing Alpha = $23 per unit Additional cost of producing Zeta = $25…

Q: Why might the number of products in a joint - cost situation differ from the number of outputs? Give…

A: Products: Product is anything which has a worth or which is capable of being bought and sold in the…