Group of answer choices remain constant and simply be spread
Q: Activity-based costing (ABC) O uses a single pre-determined overhead rate. O is less complex than a…
A: Activity based costing means where the product is valued on the basis of actual direct material ,…
Q: Who of the following is an activity-based pricing limitation? Each important action accumulates…
A: Activity based pricing is method where cost is allocated basis the cost drivers. ABC systems…
Q: Companies using activity-based costing (ABC) have learned that costs are a function of: Multiple…
A: Activity-based accounting is a costing method that is used to calculate the production costs. Under…
Q: ABC systems get more accurate as more activities are identified and analyzed. Critique the following…
A: The statement "A company should look to break its production process into as many activities as…
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: First: Activity-based management seeks to eliminate waste by allocating costs to products that waste…
A: Solution: First statement is false as "Activity-based management does not seeks to eliminate waste…
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: activities performed by another firm or individual
A: Option "b" is wrong because responsibility centers are units within the firm, not another firm or…
Q: The allocation of indirect costs in an activity-based costing system a. may require other costs to…
A: In ABC(Activity-Based Costing) costs are traced to specific activities (activity pools) within an…
Q: Do not produce the extra 10,000 units. The increase in operating income under absorption costing is…
A: Comparison of Methods Complete the following table after reviewing the income figures on the…
Q: When product diversity exists, basing overhead allocation on traditional overhead costing- Will…
A: Traditional overhead costing, also known as traditional cost accounting, is a method of allocating…
Q: Which of the following statements is false ? a. Volume-based costing has typically resulted in…
A: There are two methods of costing that are in place generally. One is volume based costing and other…
Q: First: To achieve accurate costing, a high degree of correlation must exist between the cost driver…
A: Introduction:- Activity based costing allocate manufacturing overhead costs to products in a more…
Q: What of the following is NOT a Benefit of Activity Based Management? a.It assists in the budgeting…
A: Introduction:- Activity Based Management analyzing a company's business activities through…
Q: When comparing absorption costing to variable costing, all of the below are disadvantages of…
A: Solution: When comparing absorption costing to variable costing, all of the below are disadvantages…
Q: Which of the following statements is false? I. Absorption Costing Method differs from Variable…
A: Absorption costing, now and again called “complete costing,” is a managerial accounting approach for…
Q: Activity-based costing tends to pass the cost-benefit test for companies with A. Operations that…
A: Activity based costing is a type of costing system in which costs are assigned or allocated to all…
Q: Please explain thoroughly with examples. Which statement(s) is True/False and why? If none are true,…
A: Cost accounting is the method which followed by a manufacturing business in order to estimate the…
Q: Prime indicators of problems with a conventional costing system include company profits being eroded…
A: Product cost refers to the cost or expense which is incurred for creating the product and this cost…
Q: A possible disadvantage of the ABC method is: (a) It does not allocate costs to the way production…
A: Definition: Activity-based method (ABC): The costing method which allocates overheads to the…
Q: activity-based costing is preferable in a system a) when multiple products have similiar product…
A: To assign overhead costs to products, the methodology which is used is called Activity-Based…
Q: One disadvantage of activity-based costing is that it cannot be used for external reporting. This is…
A: Introduction Activity based Costing (ABC) is a method of assignment of overhead costs to the…
Q: What are the benefits of Activity-based costing: a.All of the answers are correct b.It assists in…
A: Activity-based costing is a cost accounting method which groups each operation into an activity and…
Q: activity -based costing over traditional volume -based allocation method
A: Definition: Activity Based Costing: The costing method which identifies the activities of an…
Q: If the activities that generate overhead costs vary between departments and products, adopting a…
A: The Answer
Q: Employee training is an example of discretionary fixed costs. Select one: True False
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Which of the following statements are true? Multiple select question. Within the relevant range…
A: The objective of the question is to identify the correct statements about fixed costs in the context…
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: ?Which one of the following is not correct regarding activity-based costing Activity-based costing…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Companies that produce a variety of products need a costing system that allocates costs based on the…
A: Companies that produce a variety of products need a costing system that allocates costs based on the…
Q: Why would a business that uses traditional costing systems consider implementing activity-based…
A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…
Q: Which THREE of the following statements about activity-based costing (ABC) and traditional costing…
A: The differences between ABC (Activity-Based Costing) and traditional costing can be summarized in…
Q: Marginal costing is usually deployed when decisions about volume are being made. Discuss the…
A: Monetary Accounting has appeared with the advancement of huge scope business as business entities.…
Q: Which of the following statements is true? O a. Activity-based costs per unit are always greater…
A: The volume based costing represents the cost allocation to a single cost pool. The high volume…
Q: Which of the following statements is true of ABC systems? A) ABC systems are time-driven cost…
A: Activity-based costing (ABC) is a method of assigning overhead based on activities, which are…
Q: Discuss how traditional methods of allocating overhead to products may not provide a good measure of…
A: The overhead costs are allocated to production using various methods as traditional costing and…
Q: Manufacturing Decisions Whenever the units manufactured differ from the units sold, finished goods…
A: Completing the Table (Question 1)Here's the completed table with operating income under absorption…
Q: Manufacturing Decisions Whenever the units manufactured differ from the units sold, finished goods…
A: 1. Use the income statements on the Absorption Statement and Variable Statement to complete the…
Q: In detail discuss what are the advantages and disadvantages of using FIFO for process costing. In…
A: First-in First-out(FIFO) method under process costing is based on the assumption that at the…
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- 1. Activity based costing is likely a more advantageous costing methold versus traditonal costing, to facilliate which of the following type of analysis? a) analysis of service organization cost b) analysis of channel profitablity c) analysis of long term profitablity d) analysis for reduction selling price of all products? 2. A ___ is any factor that causes a change in the cost of an activity. a) activity based cost b) cost pool c) cost driver d) standard 3. Which of the following is no a basic cost category for indirect cost? a) inventory financing cost b) Volume related cost c) Product batch cost d) activity based costWhich of the following is a benefit of activity-based cost management system? a.It makes it easy to identify the overall activities that bear an influence on cost. b.It is inexpensive. c.It enhances strategic planning. d.It ensures allocation of all costs on the basis of machine hours.Organizations are motivated to use multiple indirect cost pools instead of a single indirect cost pool when Select one: O a. Multiple Indirect cost pools are needed to conform to external reporting requirements b. manufacturing overhead costs are difficult to control c. the cost drivers for the multiple indirect cost pools are different from the cost driver of the single indirect cost pool d. none of the options
- Which of the following statements is false? Cost allocations such as activity-based costing allow manager to evaluate profitability of their products. A budget is a quantitative plan for acquiring and using financial and other resources over a specific forthcoming time period. A detailed activity-based costing system is costly to implement. Using different allocation base does not affect manufacturing overhead costs allocated to each product.Using ABC product cost information when considering reducing cost, which of the following would not be a way to reduce activity costs? a.Improve operations so that the activity-base usage per unit is eliminated. b.Switch to a plantwide allocation rate. c.Improve operations so that the activity-base usage per unit is reduced. d.Change the classification of employees doing an activity to decrease the activity rate.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
- Which of the following statements is not a characteristic of a target costing system? It is a good system to compare the cost of your products with that of your competitors Assists with ensuring that a business can achieve its desired profit levels Focuses on cost reductions after the product has been designed Focuses on the manufacturing processes to see if improvements can be made from a cost perspective.Overhead application to costs is a critical issue for the costing of your products. We are studying several ways to handle this situation. What would cause an overhead to be overapplied, or underapplied. Discuss the results to your decision making and the financial statements for each of those two situations.Which of the following statements regarding activity-based costing (ABC) is NOT correct? a. Under ABC cost centres are replaced by cost pools b. Blanket overhead recovery rates (OAR) are replaced with cost driver rates c. ABC uses one common overhead recovery rate, such as labour hours. d. ABC tackles the problems of absorption costing by adopting a much more accurate way of charging overhead to cost units.
- What is downsizing? A. An integrated approach configuring processes, products, and people to match costs to the activities that need to be performed for operating effectively and efficiently in the present and future. B. A comparison of the quantity of output produced with the quantity of an individual input used. C. The amount of productive capacity available over and above the productive capacity employed to meet customer demand in the current period. D. An organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control.Please answer with reason for all why the option is correct and why the other options are incorrectPlease answer correct otherwise skip it 4. Which of the following statements is true? An activity measure in activity-based costing expresses how much of an activity is carried out and it is used as the allocation base for assigning overhead costs to products and services. Activity-based management involves focusing on activities to eliminate waste, decrease processing time, and reduce defects. An activity-based costing system is generally more difficult to set up and run than a traditional cost system. Multiple Choice Statements I and II are true. Statements II and III are true. All of the statements are true. None of the statements are true.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.