For product costing purposes, an indirect factory cost Group of answer choices Is not directly chargeable to the company Is chargeable to prime cost Is chargeable to conversion cost Is never included in the computation of product cost Is an immaterial cost

For product costing purposes, an indirect factory cost Group of answer choices Is not directly chargeable to the company Is chargeable to prime cost Is chargeable to conversion cost Is never included in the computation of product cost Is an immaterial cost

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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Question

43.

For product costing purposes, an indirect factory cost

Group of answer choices

Is not directly chargeable to the company
Is chargeable to prime cost
Is chargeable to conversion cost
Is never included in the computation of product cost
Is an immaterial cost

Definition Definition Total cost of procuring or producing a product or the cost that an individual or business owner undertakes for the manufacturing of goods.

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Which of the following statements about activity-based costing (ABC) is false? Group of answer choices In activity-based costing, cost drivers are what cause costs to be incurred. Activity-based costing is more likely to result in major differences from traditional costing systems if the firm manufactures only one product rather than multiple products. Activity-based costing is useful for allocating marketing and distribution costs. Activity-based costing differs from traditional costing systems in that it allocates costs according to the rates at which a product consumes different activities.
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Please do not give solution in image format thanku
The following statements have been made in relation to activity-based costing: 1. A cost driver is a factor which causes a change in the cost of an activity. 2. Traditional absorption costing tends to underestimate overhead costs for high-volume products. Which of the above statements is/are true? O A. 1 only O B. 2 only OC. Neither 1 nor 2 O D. Both 1 and 2
When using a standard cost system what term is referred to what a product does cost? Group of answer choices actual valid standard none of the above
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ABC generally causes the least amount of cost distortion among products because indirect costs are allocated to the products based on
Do not give answer in image... explain your answer please
Since overhead costs are indirect costs, Group of answer choices they require some process of allocation. they can be easily traced to production. they cannot be allocated. a predetermined overhead rate is not advantageous.