Each incorrect answer cancels out each correcr one. Indicate which of the following statements are true(T) or false (F).Indirect costs are those factors whose increase or decrease is not related to changes in the activity, so that in the shortterm they must be considered fixed.Cost Accounting studies the resources or productive factors applied to production, soit requires data expressed in physical units (hours, Kilograms, liters etc...) in addition to their monetary value.The fuelconsumed by commercial venicles must be assigned as indirect manufacturing cost. This is because it is not possible todo it directly. The warehousing costs refer to the set of activities related to the management of purchases andwarehouses, and do not include the acquisition value of this materials.When 50.000 units are produced, the fixed cost is$10 per unit. Therefore, when 100.000 units are produced fixed costs will remain at $10 per unit.The budgeted allocationrate is calculated by dividing the annual budget for indirect costs by the allocation base expected for the year. At break-even point, contribution margin is equal to the fixed costs, which leads to a zero operating income.

1. Indirect costs are those factors whose increase or decrease is not related to changes in the…

Answered: Each incorrect answer cancels out each…

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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The high-low method used in determining costs can be used to estimate the cost queation using just two points of reference True False
In CVP Analysis, total costs are defined as costs derived from product costs and period costs. TRUE FALSE
Product costs are the: Group of answer choices Non-manufacturing costs that are expensed in the accounting period in which they are incurred. Costs that are recorded as assets in the balance sheet unless the products are sold. Manufacturing costs that must be paid in the accounting period in which they are incurred. Manufacturing costs that are expensed in the income statement in the period in which they are incurred.
Write “True” if the statement is true and write “False” if the statement is false. 1. Manufacturing overhead combined with direct materials is known as conversion cost.2. A variable cost will change in total in proportion to changes in the level of activity.3. A fixed cost is constant per unit of product.4. Cost accumulation, cost allocation, and cost objects are interrelated.5. A variable cost remains constant per unit, though in total increases as activity levels increase.6. If volume increases, both total variables and total fixed costs will increase.7. Decrease in the level of activity will cause total variable and total fixed costs to decrease.8. When graphed, total variable costs and total fixed costs are both assumed to be linear withinthe relevant range.9. Fixed cost is constant in total amount regardless of changes in activity level within the relevantrange.10. Cost function is an express that mathematically links costs, their behavior, and their cost driver.11. As volume…
costs are easily traceable to a cost object such as a product, service, or department. costs are not easily traceable and are allocated to a cost object using a predetermined rate. (Do not abbreviate or add any extra spacing in your answers.)
Match each phrase that follows with the term it describes.
Which of the following statements is true? (You may select more than one answer.)a. A common cost is one type of direct cost.b. A sunk cost is usually a differential cost.c. Opportunity costs are not usually recorded in the accounts of an organization.d. A particular cost may be direct or indirect depending on the cost object.
Which of the following statements is true? O a. Activity-based costs per unit are always greater than volume-based costs per unit. O b. All the statements are false. O c. Different cost allocation methods are constructed so that they typically result in the same or similar estimates of how much it costs to make a product. O d. Activity-based costing typically provides less information about product costs while requiring more recordkeeping. O e. Volume-based costing has typically resulted in overcost for high-volume products and undercost for low-volume products. 11:40 ere to search A D a dx ENG 22-05-2021 hp delete home end an Ed 96 & 7\ 6. + backspace mum lock RO 7 V home g up K enter 50 pause B t shift 2Y end alt ctrl ins
In incremental analysis, the only costs to be considered are O relevant costs. sunk costs. O variable costs. O manufacturing costs.
Kindly answer all questions: 1.) Cost behavior is considered linear whenever a straight line is a reasonable approximation for the relation between cost and activity. A. True B. False 2.) Which of the following is an example of a cost that is variable with respect to the number of units produced? A. rent on administrative office building B. rent on factory building C. Salaries of top marketing executives D. direct labor cost, where the direct labor force is adjusted to actual production of the period 3.) Fixed costs are constant in total amount over the relevant range of operations. A. True B. False 4.) The cost function derived by the simple least squares method: A. must be tested for minimum and maximum points. B. is parabolic. C. is linear. D. is curvilinear.
(a) Variable Costs are costs that change in direct proportion to changes in activity level. (b) Unit variable cost remain constant regardless of the level of activity a. Both statements are true b. Both statements are false c. Statement A is true and statement B is false d. Statement A is false and statement B is true
Question: In cost accounting, what is the primary purpose of calculating the predetermined overhead rate? A) To allocate indirect costs to products based on a predetermined formula.B) To determine the actual overhead costs incurred during a specific production period.C) To calculate variable costs associated with each unit of production.D) To assess fixed costs that remain constant regardless of production levels.

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