COMPUTE THE UNIT PRODUCT COST UNDER ABSORPTION COSTING 2. COMPUTE THE UNIT PRODUCT COST UNDER VARIABLE COSTING

Q: Explain unit product cost under variable costing.

A: Variable Costing: “Variable costing is a method that allocates only variable manufacturing costs to…

Q: How does a product cost differ from a general, selling, and administrative cost? Give examples of…

A: Product Cost: Product costs are the expenses directly associated with making a particular product.…

Q: Classifying costs Classify each cost by placing an X in the appropriate columns. The first cost is…

A: Product costs: Product costs are the costs which are incurred in the production of the goods. These…

Q: Define product cost

A: Direct costs is referred to as the cost which can be traceable to a product directly. Example,…

Q: What is an overhead consumption ratio? What is activity-based product costing? Explain how costs are…

A: Overhead consumption ratio: The overhead consumption ratio simply estimate the proportion of each…

Q: What is the definition of a variable cost? Multiple Choice The total cost (materials, labor, and…

A: The costs incurred for the production are classified as fixed and variable components. The variable…

Q: The relevant range of activity costing is: Select one: O a. Is the cost that causes change in total…

A: Under activity costing, indirect costs or overhead are allocated to products or jobs on the basis of…

Q: Explains the effect on profit of using variable (marginal) and absorption costing.

A: The income statement can be prepared using various methods as absorption costing and variable…

Q: True/False    1. Under absorption costing, the company calculates gross margin

A: ABSORPTION COSTING Absorption Costing is a Cost managerial Accounting method in which All Cost…

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: Define prime cost and conversion. Why can't prime cost prime cost be added to conversion cost to get…

A: Classification of costs is important to arrive at per head cost. It helps the management to take…

Q: Which one of the following activity shows semi-variable cost behaviour A. Unit level activity B.…

A: A semi-variable cost, also known as a semi-fixed cost or a mixed cost, is a cost composed of a…

Q: Why cant prime cost be added to conversion cost to get total product cost?

A: Product Costs: Product costs are the costs that are incurred to produce a product or providing a…

Q: What are these equations? c.Under absorption costing, what is the cost of goods sold? d.Under…

A: Hey, since there are multiple subparts posted, we will answer the first three subparts. If you want…

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: Define unit costs.

A: Unit cost is the cost incurred by the company in the production, storage and selling of one unit of…

Q: Costs treated as product costs under direct costing are:   A. Variable production cost only B. All…

A: Direct Costing: Costs related to  production of the product only  are assigned to the product and…

Q: The product cost  period cost  opertunity cost

A: Solution:- 1)Calculation of product cost as follows under:- Product cost means costs incurred to…

Q: Explain unit product cost under absorption costing.

A: Absorption costing (also known as the “Cost-Plus” approach), is a method that is centered upon the…

Q: What is absorption costing and marginal costing in the context of overhead costs? Discuss the…

A: The difference between Absorption Costing and Marginal Costing is discussed hereunder :

Q: What are non-unit level overhead activities? Non-unit based cost drivers? Give some examples.

A: Under Activity-based costing, different overhead activities are identified and the cost of all such…

Q: Describe income statement under variable costing.

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: CVP o

A: Cost in accounting refers to the amount, that is incurred to generate revenue for the business. The…

Q: and period costs. 6. What is the difference between gross margin and manufacturing margin?

A: The costs directly associated with the creation of product or service for sale are known as a…

Q: What is  the difference between variable costing and absorption costing income statements? a.…

A: Cost accounting is widely used by cost accountants to determine the cost of the product produced in…

Q: A cost that has characteristics of both a varlable cost and a fixed cost is called a Oa,…

A: Reason:- Mixed cost refers to the cost which is a combination or mix of both fixed cost and variable…

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.