Consider the following statements concerning ABC (activity-based costing) and ABM (activity-based management):          i.   ABM can be used with value chain analysis         ii.  ABC cannot be used in the service industries         iii. ABC is used in conjunction with ABM         iv. The ABC approach assumes that costs occur in proportion to production volume

Q: explain why GAAP requires full absorption costing (instead of variable costing) if absorption…

A: Introduction:- i)Absorption costing:- Under the absorption costing, The following costs included in…

Q: Which of the following statements is TRUE? O A. Variable costs per unit decrease as production…

A: Total Variable cost are the cost which changes with change in production volume . Fixed cost do not…

Q: 5. ABC differs from traditional product costing in which of the following ways? a. Overhead is…

A: A single, volume-based cost driver, such as direct labour hours or machine hours, is used in…

Q: Fixed costs depend on the: Select one: a. amount of resources acquired b. amount of resources used…

A: Since you have posted multiple questions, we will do the first one for you. Please post the other…

Q: 1. Multiple-Choice Question - FIFO When using FIFO, A) Identical costs go to the balance sheet and…

A: FIFO is one of the inventory valuation method being used in business. FIFO means first in first out.…

Q: Which costs assignment method would you use to assign prime costs to a product: a.direct tracing…

A: Prime cost: prime cost is total of direct cost that is direct material, direct labor and direct…

Q: Which of the following statement is false?         Multiple Choice   a)The contribution margin…

A: Ans. Absorption costing allocates fixed manufacturing overhead to a product whether or not it is…

Q: **Question:** Which method is commonly used in accounting to compare actual costs with standard…

A: Activity based costing - It assigns overhead costs to products based on activities they require

Q: choose option is same for all 3 parts

A: Each individual who is 65 years of age or older receives $1000 per month from the government.…

Q: True or 2. Reasons for using standard costing include: A) Comparing projected costs against actual…

A: Part 2: Explanation:Step 1: Comparing projected costs against actual costsStandard costing provides…

Q: Full costing is often supported on the grounds that it provides a useful guide to costs.

A: Full costing, also known as absorption costing, is a method of costing that includes both direct and…

Q: A scatter graph is used to test the assumption that the relationship between cost and activity level…

A: There is a systematic relationship between costs and activity level. In accounting we see that the…

Q: Which of the following statements is true? O a. Activity-based costs per unit are always greater…

A: The volume based costing represents the cost allocation to a single cost pool. The high volume…

Q: 'Direct costs are treated differently under the ABC method than under the traditional full costing…

A: Costs consists of two main types – direct costs and indirect costs.   Direct costs include costs…

Q: Write an explanatory note on the following: (a) Activity Based Management (ABM). (b) Target Costing.…

A: Since the question has multiple sub-parts, as per the guidelines only the first three sub-parts will…

Q: 9 Which of the following types of costs present the greatest difficulty in efforts to trace them…

A: Product/service-level costs: These costs are directly associated with a specific product or service,…

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.