In making short-term special decisions, you should: a. use a traditional absorption costing approach. b. focus on total costs. c. separate variable from fixed costs. d. only focus on quantitative factors.

In making short-term special decisions, you should: a. use a traditional absorption costing approach. b. focus on total costs. c. separate variable from fixed costs. d. only focus on quantitative factors.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 7Q: Why are there objections to using absorption costing when segment reports of profitability are being...

See similar textbooks

Related questions

Q: Don't use AI

A: Explanation of Sales: Sales represents the total revenue generated from selling goods or services…

Q: Hi expert please give me answer general accounting question

A: Step 1: Definition of Total Cost of ProductionTotal cost of production refers to the total cost…

Q: To close the Withdrawals account. A. debit Withdrawals; credit Capital B. debit Capital; credit…

A: Approach to solving the question: To close the Withdrawals account, you should: B. debit Capital;…

Q: Determine the number of units completed

A: Explanation of Beginning Work in Process (WIP):Beginning Work in Process (WIP) refers to the…

Q: Need help with this accounting question

A: Step 1: Define EquityEquity represents the residual interest in the assets of a company after…

Q: Parker manufacturing estimates

A: Step 1: Definition of Overapplied or Underapplied OverheadOverapplied overhead occurs when the…

Q: None

A: Step 1: Define Contribution MarginThe contribution margin is a value by which the sales revenue…

Q: General accounting

A: The question pertains to the present value of perpetuity. Present value (PV) is the current value of…

Q: Solution want

A: To calculate the amount in Common Stock, we use the accounting equation:…

Q: Newport Stationery Supplies recently... Please provide answer the accounting question

A: Step 1: Define Taxable Income (EBT)Taxable income or earnings before taxes (EBT) is the profit a…

Q: Consider a non-current liability that has resulted in a tax liability for Falko Inc. in its 2018…

A: Understanding Deferred Tax LiabilitiesA deferred tax liability (DTL) arises when there are temporary…

Q: A company has beginning inventory of 2,300 units at a cost of $4.4 per unit. During the month, it…

A: Concept of Beginning Inventory: Beginning inventory refers to the number of units or stock a…

Q: General accounting

A: Step 1: Define Variable CostingVariable costing is a technique used to ascertain the net income of a…

Q: I need answer of this question solution general accounting

A: Step 1: Definition of Credit SalesCredit sales represent the total value of sales made on credit…

Q: General accounting

A: The Holding-Period Return (HPR) is calculated as:HPR=Total Returns During Holding Period/Initial…

Q: General accounting

A: Future Value = Present Value*(1+Interest Rate)^No. of periods Where,Present Value = $43,000Interest…

Q: Quick answer of this accounting questions

A: For this question we need to compute for the capital gains yield. Capital gains yield (CGY) is the…

Q: Give me true answer this general accounting question

A: Step 1: Define Cash Paid on Salaries PayableCash paid on salaries payable is the total amount of…

Q: Financial accounting question

A: Step 1: Define Holding Period ReturnThe holding period return of a financial instrument can be…

Q: Please provide correct option for this accounting question

A: Step 1: Define Adjusting Entry for Unearned RevenueWhen rent is received in advance, it is initially…

Q: What is the total amount of assets at the end of the year on these general accounting question?

A: Step 1: Define Accounting EquationThe Accounting Equation is the foundation of double-entry…

Q: What is net income under absorption costing???

A: Detailed explanation:Net Income using Variable Costing $ 908,000Less Change in Inventory :…

Q: Choose from the following terms:

A: The correct term is:Accounting Equation Explanation:The Accounting Equation is the fundamental…

Q: Can you help me do the statement of cash flows of this?

A: Start with the net income of $11,000. Adjust for non-cash items and changes in operating assets and…

Q: Argent solution general accounting question

A: The Degree of Operating Leverage (DOL) can be calculated using the following formula:DOL=Fixed…

Q: Quick answer of this accounting questions

A: Explanation: As per High-Low method, first, variable cost per unit is calculated, and then such…

Q: Tech pro corporation has net income solution this accounting questions

A: Step 1: Definition of Return on Assets (ROA):Return on Assets (ROA) is a financial ratio that…

Q: Give me answer

A: Note: The question states that the entity is developing a golf course subdivision that includes 250…

Q: Quick answer of this accounting questions

A: Step 1: Define Net IncomeNet income is an important value that is calculated by a company by…

Q: I want to this question answer general Accounting not use ai

A: Step 1: Define Absorption CostingAbsorption costing is used to calculate the value of inventory. In…

Q: Which of the following is NOT

A: Concept of Non-Current Assets: Non-current assets are long-term resources owned by a business,…

Q: Kindly help me with accounting questions

A: Step 1: Define Earnings Per Share (EPS)The EPS ratio is a profitability financial ratio that gives…

Q: Step by step answer with explanation

A: Explanation of Net Cash Flow:Net cash flow represents the difference between total cash inflows…

Q: I need this question answer general Accounting

A: Step 1: Define Payback PeriodThe payback period is the time required to recover a project's initial…

Q: For the year, your company's sales are $305,000, the gross profit is $250,000, and the ending…

A: To calculate the beginning inventory, we use the formula for cost of goods sold (COGS) and the…

Q: Don't use aii solution please given answer financial accounting

A: Let's go through the manual calculation step-by-step. Problem:You have $275,000 and want to grow it…

Q: Determined the predetermined shop overhead rate

A: Explanation of Predetermined Overhead Rate: The predetermined overhead rate is a cost allocation…

Q: What will Michelle's balance be in 5 year? General accounting

A: Step 1: Introduction to time value of moneyTime value of money is a financial concept which is used…

Q: ?

A: Explanation of Total Manufacturing CostTotal manufacturing cost is the complete cost incurred to…

Q: Solve this general accounting problem not use ai

A: To determine the sales growth rate for 2025, we will follow these steps: Step 1: Calculate the…

Q: Calculate the amount of the firm's after tax cash flow from operations?

A: The question requires the determination of the after-tax cash flow from operations. Cash flow after…

Q: What is cost of equity on these financial accounting question?

A: Step 1: Given Value for Calculation Risk free Rate = rf = 3%Market Return = rm = 11%Beta = b = 1.6…

Q: Data for the two departments of Kimble & Pierce Company for June of the current fiscal year are as…

A: Step 1: Key Data for Drawing DepartmentWork in process, June 1:Units: 7,400Percent complete…

Q: 2. Financial Accounting: On January 1, a company lends a corporate customer $178,000 at 7.25%…

A: Explanation of Interest Revenue:Interest revenue is the income earned by a lender for allowing a…

Q: A company produces a single product.

A: Step 1:Variable Expenses are the expenses which changes with the level of production. If the…

Q: Accounting Problem: The markup on a new diamond ring should be 28% based on the selling price. If…

A: Step 1: Selling price = Cost/Cost ratioSelling price = Cost/(Sales ratio - Markup ratio) Step 2:…

Q: Hi teacher please help me this question

A: Total Payment = Annual Installment*No. of YearsTotal Payment = 10,500*5Total Payment = $52,500 Total…

Q: Please provide answer this accounting question not use ai

A: Step 1: Define Differential CostDifferential cost is the additional cost incurred when a company…

Q: Thompson Manufacturing allocates overhead based on machine hours. The following data is provided: ⚫…

A: Step 1: Definition of Over- or Under-Allocated OverheadOver- or under-allocated manufacturing…

Q: Don't use ai given answer accounting questions

A: Step 1: Definition of Credit SalesCredit sales represent the total value of sales made on credit…

Question

100%

General Account Subject

In making short-term special decisions, you should:
a. use a traditional absorption costing approach.
b. focus on total costs.
c. separate variable from fixed costs.
d. only focus on quantitative factors.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Explain how the high-low method is used for cost estimation. What, if any, are the limitations of this approach to cost estimation?
Which statement is correct? A. Activity-based cost systems are less costly than traditional cost systems. B. Activity-based cost systems are easier to implement than traditional cost systems. C. Activity-based cost systems are more accurate than traditional cost systems. D. Activity-based cost systems provide the same data as traditional cost systems.
Absorption costing is:A. a good way to value inventories for the balance sheet.B. used for external reporting purposes.C. less useful than variable costing for management decision making. D. A and B is correct E. A, B and C is correct
In a decision analysis situation, which one of the following costs is generally not relevant to the decision?A. Differential cost.B. Avoidable cost.C. Incremental cost.D. Historical cost.
When using the general methods to estimate cost behavior, A. It is a good idea to use multiple methods so results can be compared B. Managers often apply their own best judgement as a first step in the estimation process C. Results are likely to differ from method to method D. Large differences in methods suggest that the cost cannot be estimated.
Which of the following statements regarding marginal costing is incorrect? Select one: O A. It is useful long-term planning technique OB. It assumes that fixed costs remain fixed over relevant activity ranges O C. It assumes that variable costs vary in proportion to activity O D. It assumes that costs can be classified as variable or fixed
Decisions where relevant cost analysis might be used effective is Keep or replace decision. Explain IN YOUR OWN WORDS what "Keep or replace decision" is AND MUST USE EXAMPLES IN YOUR DESCRIPTION.
True or 2. Reasons for using standard costing include: A) Comparing projected costs against actual costs B) Planning and budgeting purposes C) Setting prices in advance D) Identifying specific areas for process improvement E) All of the above
Management may be tempted to overproducea. when using variable costing, in order to increase net income.b. when using variable costing, in order to decrease net income.c. when using absorption costing, in order to increase net income.d. when using absorption costing, in order to decrease net income.
How important is it to trace costs appropriately? Explain. As you are beginning to think about the importance of tracing costs appropriately, please consider the differences between variable costing and absorption costing. What implications does each of these have on such things as financial reporting of profit and pricing your products for the marketplace?
Variable costing can also be referred to as: Select one: a. Internal costing b. Cost-plus costing c. Absorption costing d. Marginal costing
Which of the following is not a true statement about variable costs? a. Total cost is known to change in proportion to any changes in related level of volume or activity. O b. When considering total cost behaviour, focus on fixed and variable costs. O c. A total cost that can change in proportion to changes in the number of products produced. O d. Total cost never changes in proportion to any changes in related levels of volume or activity. O e. An important cost to identify so managers can make important management decisions.