Departmental overhead rates may not correctly assign overhead costs due to: Multiple Choice

Q: In recent years, why has labor become such a small part of product costs and how can its use in…

A: Overhead allocation is the process of distributing indirect costs or overhead expenses to specific…

Q: Which overhead allocation methods do not charge support department costs to a support department…

A: Overhead: It is the indirect cost incurred in addition to the direct costs for manufacture of…

Q: Which of the following statements is true regarding by products?   a. Process costing is the only…

A: Solution: "Job order costing systems may have instances where by-products result from the production…

Q: Which of the following statements about activity-based costing (ABC) is false? Group of answer…

A: The objective of the question is to identify the false statement about activity-based costing (ABC).

Q: Which of the following might be a reason that allocating overhead under an activity-based approach…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: Which of the following statements about activity-based costing (ABC) is false? Group of answer…

A: The objective of the question is to identify the false statement about activity-based costing (ABC)…

Q: Time-driven ABC requires estimates of onl

A: Time-Driven Activity-Based Costing-: Time-driven ABC allows managers to document their expenses on…

Q: umerous predetermined overhead rates while traditional uses only one.   The way they assign direct…

A: Correct answer is    Activity based costing may not assign all product costs to units if they are…

Q: Which of the following is not a distinction between process costing and job order costing? a. Job…

A: Job costing means where actual direct cost is included in specific cost and overhead is applied on…

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: Manufacturing overhead: Group of answer choices includes direct materials, indirect materials,…

A: Includes direct materials, indirect materials, indirect labor, and factory depreciation.This choice…

Q: the allocation base for applying overhead product the allocation base for applying overhead product…

A: The concept of activity-based costing requires identifying the cost pool, cost driver, number of…

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: Typically, less accurate product costing information is produced by assigning costs…

A: The costing system includes various methods adopted by business entities for evaluating their total…

Q: process c

A: Given: To define the incorrect statement about the job order costing systems and the process costing…

Q: Multiple or departmental overhead rates are considered preferable to a single plantwide overhead…

A: The objective of the question is to identify the scenario in which multiple or departmental overhead…

Q: Which of the following statements is not correct concerning multiple ?overhead rate systems A…

A: The multiple overhead rate system is the one where different departments have their own rates of…

Q: Group of answer choices remain constant and simply be spread

A: Activity based costing refers to the concept of assigning the desired direct as well as indirect…

Q: Activity-based costing a. may not assign all manufacturing overhead costs to products b. uses…

A: Under activity based costing, the overheads are applied to production on the basis of activity base…

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: If the activities that generate overhead costs vary between departments and products, adopting a…

A: The Answer

Q: Consider the following statements regarding traditional costing system: I – Overhead costs are…

A: Introduction  Traditional costing system may be defined as that type of costing system in which…

Q: Under traditional costing systems, which calculate a single predetermined overhead rate using…

A: Answer: Under traditional costing systems, which calculate a single predetermined overhead rate…

Q: single predetermined overhead rate using volume-based drivers,

A: If a single predetermined overhead rate based on volume-based drivers is used for all products, cost…

Q: d in the cost of the product b) that it is not really useful for managerial decisions c) that it…

A: A cost accounting system is a system of accounting that is helpful for the internal management to…

Q: The following statements refer to organisations that use service costing: (i)  The service provided…

A: Service costing is the cost associated with providing and delivering service. There are difference…

Q: Why do departmental overhead rates sometimes result in inaccurate product costs?

A:

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: Accounting Direct labor or machine hours may not be the appropriate cost driver for overhead in all…

A: Activity based costing is the method used by the entities because it helps in reducing the…

Q: XYZ is considering to adopt an activity based costing systems. They found that an activity-base a.…

A: Cost accounting is one of the important branch of accounting under which different type of costs and…

Q: Under traditional costing systems, which calculate a single predetermined overhead rate using…

A: Cost refers to the monetary consideration which is incurred to produce, sell or to acquire items.…

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.