a. Prepare a schedule showing the allocations to the two divisions using each allocation base. b. Referring to your answer to part a, explain why allocations are sometimes considered arbitrary.

Q: What are the three methods of departmental cost allocation? Explain how they differ, which is…

A: Departmental cost allocation Departmental cost allocation refers to the allocation of overhead…

Q: Explain the implementation issues of the cost estimation methods

A: Cost estimation is the process of determining the probable cost of a product before starting the…

Q: 4. Discuss the evaluation of the two divisions, using the performance determined in parts (1), (2),…

A:

Q: Define and give examples of the following terms: cost pool, cost object, and cost allocation (or…

A: Responsibility accounting: Responsibility refers to the several concepts and tools used by managers…

Q: What is cost-allocation base? Give three examples?

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With the…

Q: --- ----- is an obvious way to manage bookings would be to divide the available capacity into…

A: The strategy and techniques used to manage the allocation of their capacity to different fare…

Q: Explain briefly what the EOQ model is andhow it can be used to help establish an optimalinventory…

A: Economic Order Quantity (EOQ) Model It is a method of inventory costing that aims to identify the…

Q: How does the allocation method affect whether to process further or not?

A: Allocation method is always used by the company in the allocation of costs which are in jointly…

Q: Standard cost is a Select one: O a. Actual cost b. Historical cost c. Predetermined cost O d. direct…

A: Let's start with understanding of meaning of standard cost  Standard cost:- Standard cost is the…

Q: Understand how toconstruct and use a balancedscorecard

A: Balance Score Card: Balance Score Card is used for assessing the efficiency of the business…

Q: What approaches might be used to decide the sequence in which to allocate support departments when…

A: Different approaches can be used to decide the sequence to allocate support department while using…

Q: Under what conditions are the results from using the direct method of allocation the same as those…

A: Allocation of Cost = Cost allocation is a Cost accounting Process in which organisation identify the…

Q: Explain the measures of cost allocation.

A: The company incurs a different cost to provide goods and services to the customers. The entity…

Q: Which of the following is not an approach to compute equivalent units? Multiple Choice All of these…

A: Equivalent Units :— Number of incomplete units are assumed to be equivalent to completed units when…

Q: Define each of the following terms:d. Flotation cost, F

A: Primary market is the place where company sells or offers new equity shares to the investors. New…

Q: Define each of the following terms.f. Conversion ratio; conversion price; conversion value

A: Answer: Conversion ratio: It is ratio of converting bonds into the common stock of the company. An…

Q: iscuss two approaches of segment reporting

A: The segment reporting is the part of the reporting of the operational segment of the company in this…

Q: What are the major procedural differences in applying the current rate and temporal methods of…

A: The key differences related to monetary assets carried at historical cost. Under the temporal…

Q: Explain why the order makes a difference in one or more of the three allocation methods - Direct,…

A: The order makes a difference in all three allocation methods. In the Direct method, the order of…

Q: hat does equivalent units of production (EUP) mean, and why is it necessary for it to be correct?

A: Equivalent units of production (EUP) is a managerial accounting computation that estimates the…

Q: Define the following terms, and explain the relationship between them: (a) cost estimation, (b) cost…

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: a. Sharpe ratio b. Treynor ratio c. Information ratio d. Jensen’s alpha Discuss how to selecet…

A: Since you have posted a question with multiple sub-parts, we will explain the first three sub-parts…

Q: What are the four basic steps involved in the execution of a nenemergency change order?

A: The change order is the order in which the specifications of particular material are changed or the…

Q: differentiate and give illustrations of the difference between FIFO and Weighted Average.

A: Inventory Valuation - There are three method using which company can value their inventory a. FIFO…

Q: Why is the reporting of segment information required? Justify your response. Why is the reporting of…

A: Segment reporting deals with in-detail segment-wise financial reporting in the financial statements…

Q: Describe the concept of an equivalent unit and how to compute equivalent units

A:

Q: What is meant by a unit of comparison? Why is it important?

A: Fixed assets:   These are the types of assets owned by the business that is expected to provide an…

Q: 18. Which of the following cost allocation methods does not take into consideration that service…

A: The direct method is the simplest of the four. The direct method allocates the costs of each of the…

Q: Should NSP have processed each of the products further? What effect does the allocation method have…

A: Sales value at split off method:   Sales value at split off method allocates joint cost to each…

Q: Direction: Give at least three (3) differences of IFRS for SMEs and Full IFRS EXPLAIN

A: SOLUTION- INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)-  ITS IS A SET OF RULES AND GUIDELINES…

Q: differences between Weighted Average and FIFO methods

A: Weighted Average and FIFO methods are used to value inventory of business.

Q: Do equivalence calculations require a common time basis for comparison?

A: Answer: The calculation of equivalence method is used where duration of the projects is not equal.…

Q: How does the computation of equivalent units under the FIFO method differ from thecomputation of…

A: Equivalents units for production: The activity of a processing department in terms of fully…

Q: Discuss the difference between the revaluation model and cost model in detail.

A: Revaluation model and cost model are two different models of subsequent measurement of invested…

Q: Classify the following fixed costs as normally being either committed or discretionary:c. Research.

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

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.