A standard costing system will produce the same income as an actual costing system when standard cost variances are closed to: a. Work-in-process b. Work-in-process and finished goods c. Cost of goods sold d. Cost of goods sold and inventories

A standard costing system will produce the same income as an actual costing system when standard cost variances are closed to: a. Work-in-process b. Work-in-process and finished goods c. Cost of goods sold d. Cost of goods sold and inventories

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 1MCQ: Accumulating costs means that a. costs must be summed and entered on the income statement. b. each...

See similar textbooks

Related questions

Q: Don't want incorrect solution

A: To determine the profit recognized in the second year using the installment sales method, follow…

Q: A firm has a return on equity of 22 percent. The total asset turnover is 2.9 and the profit margin…

A: We use the following relationship between the return on equity (ROE), net income, and total equity…

Q: What is variable overhead?

A: Explanation of Direct Materials: Direct materials are the raw materials and components that can be…

Q: What is the debt to equity ratio for the period???

A: The debt to equity ratio is calculated using the formula: Debt to Equity Ratio = Total Liabilities /…

Q: The present cost structure on a percentage unit basis

A: Step 1:First calculate the contribution margin from the special order: Contribution margin from…

Q: What was her capital gains yield??

A: Step 1: Given Value for Calculation Purchase Price = p = $42.67Selling Price = s = 43.89 Step 2:…

Q: Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products,…

A: Step 1: Calculate the standard plastic usageEach helmet should require 0.62 kg of plastic. Given…

Q: None

A: Step 1: Definition of MarkupMarkup is the difference between the selling price and the cost price of…

Q: Find out overhead

A: Explanation of Predetermined Overhead Rate:The predetermined overhead rate is a calculated rate used…

Q: None

A: The question requires the determination of the cost per unit. Cost per unit encompasses both the…

Q: Q.No.23 Financial accounting

A: Explanation of Manufacturing Overhead (MOH):Manufacturing Overhead (MOH) includes all indirect costs…

Q: Provide correct answer general accounting

A: Step 1:Under activity-based costing, the activity rate is calculated by dividing the total activity…

Q: How will this be shown on the income statement?

A: Step 1: Definition of Contra AccountsContra accounts are accounts used to reduce the balance of a…

Q: Find correct solution this question

A: Step 1:a) Profit margin = Net income/Net sales = 380,000/1,500,000 =25.33% Profit margin = 25.3%…

Q: Butler Tech, Inc., is expanding into India. The company must decide where to locate and how to…

A: Here's a brief explanation of why each item belongs to its respective financial statement(s):a.…

Q: 4 POINTS

A: Step 1: Formula Equity ending balance = Equity beginning balance + Net income - WithdrawalsNet…

Q: Provide answer general Accounting question

A: Step 1: Define Gross Profit MarginGross profit margin is a profitability ratio to measure the…

Q: Sanchez Company's output for the current period was assigned a $200,000 standard direct materials…

A: Step 1: Understand the Relationship Between Variances and CostsThe actual total direct materials…

Q: General accounting

A: Step 1: Definition of Straight-Line Depreciation MethodThe straight-line depreciation method…

Q: Need answer

A: To calculate the overhead allocation to Product X using a plant-wide allocation system with direct…

Q: What is the cost of a guitar to james?

A: The selling price of a guitar is $144.79, and the markup on the selling price is 42.4%. Cost =…

Q: What is the equipment after tax salvage value?

A: Let me do it step by step:1. Original cost = $24 million2. Book value = $0 because 100% has been…

Q: Please given answer general accounting

A: Step 1: Define Financial RatiosIn accounting, there are various financial ratios used to analyze and…

Q: provide general accounting solutions

A: 1. Direct Materials CostEach unit requires:Usable materials: 4.20 poundsWaste and spoilage: 0.80…

Q: Financial accounting

A: Step 1: Define Expected Return (CAPM)The Capital Asset Pricing Model (CAPM) is used to calculate the…

Q: Don't Use Ai

A: The payback period approach is a simple capital budgeting tool that determines how long it takes for…

Q: What was the number of credit sales during December? General accounting

A: To find the number of credit sales during December, we can use the following formula: Credit Sales =…

Q: Please wanna answer for this accounting problem

A: The coefficient of variation (CV) is calculated by dividing the standard deviation by the expected…

Q: What is the effective cost??

A: Credit period for which credit is extended = 40 - 15…

Q: XYZ Company accumulates the following data relative to jobs started and finished during the month of…

A: Explanation: The formula to calculate total material variance is as follows:Total materials variance…

Q: Answer?

A: The question requires the determination of the manufacturing cycle efficiency. Manufacturing Cycle…

Q: On December 31, Strike Company decided to sell one of its batting cages. The initial cost of the…

A: Explanation of Initial Cost of Equipment:The initial cost of equipment refers to the amount a…

Q: D.P. May has a net income of $44,000, total assets of $442,000, total liabilities of $211,000, and a…

A: To calculate the Price-Earnings (P/E) Ratio, we use the formula: P/E Ratio =Market Price per Share /…

Q: General accounting

A: The units-of-production method calculates depreciation based on usage, such as miles driven. Here's…

Q: Julia earned P300,000 in rendering services. His total expenses are 30%. His net income is? a.…

A: Explanation of Revenue:Revenue refers to the total income earned by a business from its core…

Q: Cost-volume-profit analysis assumes what_ a) Variable costs change with volume b) Fixed costs change…

A: The problem pertains to Cost-Volume-Profit Analysis. Cost-Volume-Profit (CVP) analysis helps…

Q: General accounting

A: To answer the question, we need to calculate the cost of goods sold (COGS) for November and the…

Q: Help

A: The question requires the determination of the desired profit.In finance, desired profit refers to…

Q: Please provide this question solution general accounting

A: Step 1: Definition of Key TermsGross Income: Total income before any deductions, exemptions, or…

Q: Ans?? Financial accounting question

A: Step 1: Define Variable CostVariable costs are expenses that alter as a company's product or service…

Q: Help

A: To allocate the cost to the building, you must proportionally allocate the total purchase price…

Q: You believe the expected return on ABC is 16.20%, and that the variance of ABC's returns is 0.6400.…

A: The standard deviation is the square root of the variance. sqrt0.6400=0.8 The coefficient of…

Q: What is the profit margin?? General accounting

A: Step 1: Definition of Profit MarginProfit Margin is a profitability ratio that measures the…

Q: A standard cost: a. is the "true" cost of a unit of production. b. is a budget for the production of…

A: Option a: This option is incorrect because standard cost is not a true cost of production. The…

Q: None

A: Cost of Equity=Rf+β×(Rm−Rf)Where:Rf = Risk-free rate = 4%β = Beta of the stock = 1.45Rm =…

Q: I need Solution

A: Regression analysis in cost accounting primarily estimates the relationship between costs and…

Q: Accurate answer

A: Explanation of Predetermined Overhead Rate: A predetermined overhead rate is a calculated percentage…

Q: What is the free cash flow to the firm ???

A: To calculate the Free Cash Flow to the Firm (FCFF), we use the following formula:FCFF =EBIT(1 −Tax…

Q: provide correct answer of this General accounting question

A: Step 1: Definition of Effect on Cash FlowsWhen an asset is sold for less than its book value, the…

Q: Provide answer

A: Step 1: Introduction to stockholders' equityStockholders' equity refers to the residual value of the…

Question

A standard costing system will produce the same income as an actual
costing system when standard cost variances are closed to:
a. Work-in-process
b. Work-in-process and finished goods
c. Cost of goods sold
d. Cost of goods sold and inventories

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 by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

For which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard cost
Using the costs listed in the previous problem, classify the costs as either product costs or period costs.
Explain how a scatter graph is used to identify and measure cost behavior.
Which costs are assigned using the weighted-average method?
In assigning costs to goods transferred out, how do the weighted average and FIFO methods differ?
Which is not a step in analyzing the cost driver for manufacturing overhead? A. Identify the cost B. identify non-value-added costs C. analyze the effect on manufacturing overhead D. identify the correlation between the potential driver and manufacturing overhead
Explain the difference between a period cost and a product cost.
What is the primary difference between the two cost accounting systems regarding the accumulation of costs and the calculation of unit costs?
Can a company gather information for both variable and absorption costing systems?
Why are units shipped used to calculate the value-stream product cost?
In the variable costing income statement, how are the fixed manufacturing costs reported, and how are the fixed selling and administrative expenses reported?
The variable overhead rate variance is caused by the sum between which of the following? A. actual and standard allocation base B. actual and standard overhead rates C. actual and budgeted units D. actual units and actual overhead rates