A range of costing methods have been considered in the module. Which of the following statements is correct? Marginal costing is based on the distinction between direct and indirect costs whereas in full unit costing methods, costs are classified according to behaviour. Some businesses favour marginal costing because marginal cost per unit is lower than full cost per unit and thus the business will always make more profit if marginal costing is adopted. Full unit costing allows identification of profit per unit, whereas marginal costing identifies the contribution per unit. Activity-based costing always results in a higher cost per unit than absorption costing.

Q: Kaizen costing aims to reduce costs during the A. production B. post-production C. design D. testing…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: The major categories or captions that would appear on an income statement prepared in the variable…

A: Variable costing: Under this method, all cost is divided into two parts. The first part is a…

Q: The major categories or captions that would appear on an income statement prepared in the variable…

A: Variable Costing - Under Variable Costing all the variable costs are deducted from the sales revenue…

Q: The absorption costing approach to cost-plus pricing is the safest method to use regardless of unit…

A: Under the absorption costing approach of cost-plus pricing, the selling price is determined by…

Q: 9) Which of the following is true with activity based cost accounting? A) Activity-based costing…

A: Correct option is C c) The focus is on activities that account for a sizable fraction of indirect…

Q: 19) For internal decision-making purposes, many companies use the income statement using the…

A: Solution Concept The contribution approach is a method where the contribution generated by a product…

Q: Fixed costs depend on the: Select one: a. amount of resources acquired b. amount of resources used…

A: Since you have posted multiple questions, we will do the first one for you. Please post the other…

Q: Explain why there is a difference in the operating profit and operating income under the two methods…

A: The product cost in an absorption costing method includes all variable and fixed production…

Q: A costing approach in which all manufacturing costs are product costs." This statement best…

A: All manufacturing cost will include the direct material , direct labor , variable and fixed…

Q: The marginal cost is: Select one: a. Is the incremental cost of an activity, such as producing a…

A: Marginal cost refers to the additional cost.

Q: Indirect and common costs often make up a significant portion of the cost of a product. All of the…

A: Indirect costs are expenses that support the overall operation of a business and must be allocated…

Q: (a) What is the customer margin under activity-based costing when the number of orders increases to…

A: Customer Margin under Activity based costing = $ 7,640 Customer Margin under Traditional costing = $…

Q: Net income computed using absorption costing can be reconciled to the net income computed using…

A: The difference of income between absorption costing and variable costing only occurs only due to the…

Q: Which of the following statement about Activity Based Costing is true? a)  Costs which change with…

A: In the activity level costing the indirect cost is allocated on the basis of their activity. for…

Q: Marginal costing is usually deployed when decisions about volume are being made. Discuss the…

A: Monetary Accounting has appeared with the advancement of huge scope business   as business entities.…

Q: all costs over the life of a product, with the exception of costs already spent on the desig

A: Life Cycle costing is basically a process to learn/know, how much money will be spent on an asset…

Q: Which of the following line items will not be found in the absorption costing income statement?…

A: The objective of the question is to identify which line item among the given options will not be…

Q: Marginal costing is a technique that distinguishes between variable costs and fixed costs. In this…

A: Cost-volume-profit (CVP) analysis is an important and systematic method that provides useful…

Q: Cost-volume-profit analysis is used to make many decisions, including product pricing and…

A: The cost volume profit analysis is used to assess how the firm’s profit is affected if there is a…

Q: In detail discuss what are  the advantages and disadvantages of using FIFO for process costing. In…

A: First-in First-out(FIFO) method under process costing is based on the assumption that at the…

Q: How would you define fixed and variable product costs? How are these costs used in determining the…

A: Cost of production is the total cost involved in producing a particular volume of products. These…

Q: Variable costing income will be greater than absorption costing income when:   a. Sales is greater…

A: If  under variable costing, unit sold are less than units produced, the fixed manufacturing overhead…

Q: When using a contribution margin format for internal reporting purposes, the major distinction…

A: The contribution margin format is a financial statement format used to analyze the profitability of…

Q: The _________ is considered part of the cost of the product in absorption costing, but not in…

A: Absorption costing involves all the direct expenses related to the production whereas, variable…

Q: ment, operating income can be determined using absorption costing or variable costing. Select…

A: Variable costing might exclude certain direct fixed costs, whereas absorption costing covers all…

Q: Cost-volume-profit analysis is used to make many decisions, including product pricing and…

A: Cost volume profit analysis or break-even analysis is a tool used for making short-term financial…