by comparison with procedures used for determining year end physical inventory. It is not unusual for a department head to estimate rather than count inventories is process. Consequently, figures are bound to save errors. Is this good practice or should more accurate methods be used, such as having inventory teams determin

Q: In a job order cost system, a decrease to Manufacturing Overhead will be accompanied by an increase…

A: Factory overhead is the indirect cost incurred in the process of manufacturing. Therefore, it is…

Q: The three major differences between process and job order costing systems are those relating to:

A: Job Order Costing Process order Costing The Job Order Costing is based upon the manufacturing cost…

Q: A stapler manufacturer uses a single plantwide predetermined overhead allocation rate to allocate…

A: Step 1: Overhead cost is the cost spent by the business over and above the labor cost. It can be…

Q: Which would be classified as an external failure cost on a quality cost report? a. Reentering data…

A: The cost of quality is the total cost related to external failure, cost of internal failure,…

Q: Which of the following is not a reason to allocate overhead? Some overhead costs are seasonal and…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: 5  Why may departmental overhead rates NOT correctly assign overhead costs?   Select one: a.…

A: c. Because of the over-reliance on volume as a basis for allocating overhead costs where products…

Q: process costing, if an abnormal loss arises, the process account is generally: a)  debited with the…

A: In process costing when goods are produced it is produce by different processes that are done in…

Q: Which of the following would be part of a financial manager's investment decision? * a. Collecting…

A: The financial manager is supposed to take three types of decisions: Investment decision Financing…

Q: When applied by service companies, the use of the single and multiple department overhead rate…

A: The correct answer is “False.”

Q: 10 Why may departmental overhead rates NOT correctly assign overhead costs? Select one: a. The…

A: The correct answer is:d. The over-reliance on volume as a basis for allocating overhead costs where…

Q: Under process costing, the total production costs incurred in each process must be split between the…

A: The objective of the question is to understand how the total production costs are allocated under…

Q: I am having difficulty understanding how to calculate the cost per equivalent unit for direct…

A: Compute equivalent units of direct materials and conversion as shown below:

Q: Setting up a time-based activity-based costing system does not require extensive interviews with…

A: Solution: Time-driven ABC enables managers to report their costs on an ongoing basis in a way that…

Q: Departmental overhead rates applied based on a volume measure such as direct labour-hours or…

A: Overheads are the indirect costs of manufacturing the product like indirect material costs, indirect…

Q: A company is considering investing in a project that requires a capital investment of $40,726 and is…

A: Solution: The NPV refers to the net present value of the project. To calculate the net present value…

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.