As we have discussed in previous chapters, product costs are made up of Direct Materials, Direct Labor and Manufacturing Overhead. In making a decision as to whether we should outsource the production of a product, do we take all of the product costs into consideration or do we make adjustment based on the type of cost behaviors?  Please give examples.

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: What type of cost drivers do modern costing systems use and how does it differ from the cost drivers…

A: Cost Driver Business activities are  influenced by a cost driver . Cost drivers are the factors…

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: Absorption costing and marginal costing are product costing methods used in organizations. Briefly…

A: Introduction:- Absorption costing, often known as "full costing," is a managerial accounting…

Q: Companies can choose from different costing methods: process/product costing and activity-based…

A: Process costing: Process costing is used when there is a continuous manufacturing process. The…

Q: A very key concept in managerial accounting is how costs "behave", either fixed or variable. Once we…

A: Fixed Cost: These are costs that will remain the same irrespective of production or number of units…

Q: Which of the following is NOT a reason for companies to assign costs to products or services?

A: We know that objective of every business is to attain profitability  Now, Profit for business is =…

Q: First: Activity-based management seeks to eliminate waste by allocating costs to products that waste…

A: Solution: First statement is false as "Activity-based management does not seeks to eliminate waste…

Q: What modifications are made to the cost classification of product costs in estimating service costs?

A: Cost classification refers to the separation of various expenses into different categories. It is…

Q: What is a product cost? What is a period cost? What is the difference and why is it important to…

A: Product cost refers to all costs directly pertaining to the production of a product. While, Period…

Q: What is different than traditional costing that uses a volume-based driver? Can you give me some…

A: There are many different types of costing methods, out of which the selection of costing method to…

Q: o alternatives for prod

A: The two alternatives for product costing systems are job costing and process costing. Job Costing:…

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: When materials and supplies are used in a product that will be sold to customers, the usage of the…

A: The answer for the multiple choice question and relevant explanation are presented hereunder :…

Q: 2. What are the key reasons for product cost differences between simple costing systems and ABC…

A: Financial accounting and cost accounting are two significant branches of accounting. Financial…

Q: When refining a costing system, the desire to identify direct costs, is primarily drive by the fact…

A: While refining a costing system the main purpose for direct costs is to identify and classify as…

Q: lative to traditional product costing, activity-based costing differs in the way costs are Group of…

A: There are different methods of costing in the accounting some are simple but others are not so…

Q: Which of the following would not be a period cost? Group of answer choices Research and development…

A: Solution: Period cost is the cost that is expensed in the income statement and same is not…

Q: Why do most companies use normal or standard costing? After all, actual costing gives the actual…

A: The standard costing is a costing system that is used to estimate the expenses of the production…

Q: characteristics critically affect the design of a cost management system? Select one: a. Culture…

A: Cost management system consisting of the formal methods that include controlling and planning of…

Q: The internal cost analysis process involves the following in what order? (A) Identify the links…

A: Internal cost analysis used for analysing value creating process and opportunity to reduce its cost…

Q: Case Study: Cost Accounting for Operational Efficiency and Decision-Making introduction: Cost…

A: Cost Accounting -One type of management accounting system called cost accounting is used to assess…

Q: In your own words, explain the difference between absorption costing and variable costing methods.…

A: Absorption costing: Its also called as Full costing.

Q: Why is it important to keep track of both direct and indirect costs? How do these costs effect…

A: (a )If we keep a tracking record of direct and indirect costs we can determine the firm's…

Q: Please explain the statement below (T/F) thoroughly with examples illustrating the answer.  "To…

A: "Activity-based costing is one of the costing methods that is structured and designed in such a way…

Q: Employee training is an example of discretionary fixed costs. Select one: True False

A: Hi student Since there are multiple questions, we will answer only first question.

Q: What is meant by customer profitability analysis as it relates to activity based costing? Give an…

A: In determining the profitability of customer relationships through customer profitability analysis…

Q: Of the following processes, which is chiefly concerned with products and services that have not yet…

A: Cost Accounting -Recording, analyzing, and reporting expenses to management are all part of cost…

Q: Which of the following statements are true? Multiple select question. Within the relevant range…

A: The objective of the question is to identify the correct statements about fixed costs in the context…

Q: Which of the following is not a step st driver rate by the volume of cost w to reduce the costs of…

A: Explanation: Activity based costing is a costing  technique where production is split into different…

Q: 1. Planning is a function that involves ? 2. Product costs are costs that are a neccessary and…

A: Hi! There are two questions given, but we are entitled to solve only one question at a time so I…

Q: In your own words, explain what differential costs mean. How are fixed costs and variable costs…

A: The cost can be classified on the basis of nature variable or fixed. The variable cost are directly…

Q: Why would a business that uses traditional costing systems consider implementing activity-based…

A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…

Q: Which of the following statements is true? *   A. The traditional approach to costing uses many…

A: Cost accounting is one of the branches of accounting. Under this, all costs related to the product…

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: Indicate whether the following statement is true or false, then support your view. By using a…

A: Traditional method of costing is the method of allocating overheads based on the single cost driver.…

Q: Activity Based Costing (ABC) is an alternative method for allocating costs to products by…

A: Activity based costing is also known as ABC COSTING . Traditional costing applies an predetermined…

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

A: cost volume profit analysis (CVP analysis) is used to determine many factors such as 1)desired…

Q: "ABC is a costing method that allocates overhead and indirect costs to related products and…

A: Answer:

Q: ivity analysis, and how is it used with cost driver analysis to manage costs and increase profits?…

A: An organization might use activity analysis as a management tool to recognize and comprehend the…

Q: Explain why managers need to allocate indirect costs to the cost objects when calculating product…

A: Cost accounting is one of the important branch of accounting. Under this, different type of costs…

Q: The concerns that encourage management to look at the life- cycle costing are? 1.Opportunity Costs…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…

Q: Which of the following statements is true of ABC systems? A) ABC systems are time-driven cost…

A: Activity-based costing (ABC) is a method of assigning overhead based on activities, which are…

Q: Discuss how traditional methods of allocating overhead to products may not provide a good measure of…

A: The overhead costs are allocated to production using various methods as traditional costing and…

Q: Describe the characteristics of products which would suggest it would be better to use ABC as an…

A: ABC stands for Activity based costing which is method that allocate the overhead as well as indirect…

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…

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.