Answered: Costs that are not related to any…

Costs that are not related to any specific product, batch, or unit of production are referred to as facility-level costs. True False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.

Question

QUESTION 22

Costs that are not related to any specific product, batch, or unit of production are referred to as facility-level costs.

True

False

Expert Solution

Step 1

In activity based costing facilty level costs are costs which cannot be allocated to any special thing

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38. Unit product cost calculations using absorption costing do NOT include ________. fixed manufacturing overhead variable manufacturing overhead variable selling and administrative costs direct materials
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Question 20
Explain the difference between the cost classifications, ‘production prime costs’ and ‘indirect production overheads’, and discuss the cost accounting applications of the differences used for traditional absorption costing purposes [dont give chatgpt answer]
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QUESTION 23 Expenses can be categorized by whether the cost incurred is directly related to production or not. If directly related, it will not change with the production level, thus called Fixed Cost. If directly related, it will change with the production level, thus called Fixed Cost. If not directly related, it will not change with the production level, thus called Variable Cost. If not directly related, it will change with the production level, thus called Variable Cost. None of the above is a correct statement.
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