Determine the total service department costs incurred by S2

Q: 18. Responsibility reports for cost centres include: Controllable Non-controllable costs costs а. No…

A: Responsibility accounting reports activities that are in control by the management.

Q: 9. Selling and administrative costs are direct costs. O inventoriable costs. O period costs.…

A: Ans. The cost incurred by a business entity is broadly divided into two categories as : i. Direct…

Q: concept of relevant cost

A: In management accounting, the phrase "relevant cost" refers to avoidable expenses that are only…

Q: In any construction project, the total bill to the owner must equal a. Gross profit b. Net profit c.…

A: The construction contract accounting is the accounting system suitable for businesses engaged in…

Q: The Billing rate/Labor costs ratio is a billing multiple and can be used to evaluate relative…

A: The Billing rate/Labor costs ratio, referred to as the billing multiple, is a financial gauge that…

Q: 6. What are costs that vary in proportions to changes in the activity base?

A: In cost accounting, different types of costs are incurred and accounted for. Some costs do not…

Q: Which method of allocating support department cost is more accurate method

A: Accurate method of allocating support department cost is "Reciprocal method" because under this…

Q: The total cost of a cost object can only include the direct costs that are directly traced to that…

A: The total cost of a cost object includes both costs i.e costs that are directly traced and…

Q: Help question 33

A: Answer: Option C is the correct answer.

Q: A cost objective is the: O reason for allocating the cost O product, service, or department that is…

A: Cost object is the allocation related to the product, service. It allocate the cost according to the…

Q: Explain service method of allocating prior service cost.

A: Service cost refers to the part of pension expenses deducted every year. Service cost is amortized…

Q: Compare and explain differences in the support-department costs allocated to each production…

A: Cost allocation is the process in cost accounting that deals with identifying the cost centers or…

Q: Help question 32

A: Answer: Option d. equivalent units.

Q: Which of the following costs can be capitalized for self-constructed tangible as - Materials and…

A: Introduction:- The cost of a self-constructed fixed asset should contains those costs that relate…

Q: Which of the following is referred to as the second stage of cost allocation? O The allocation of…

A: Cost allocation is the assigning and allocating the cost to the specific objects, departments,…

Q: 18. Which of the following cost allocation methods does not take into consideration that service…

A: The direct method is the simplest of the four. The direct method allocates the costs of each of the…

Q: Responsibility Centers include the following except: A) Profit B) Revenue C) Process D) Cost

A: These are the type of responsibility center i.e. expense center, profit center, investment and…

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.