It is ridiculous to suggest that process costing may also be suited to service firms, as services cannot be replicated in the same way that manufacturing processes can be

Q: explain why GAAP requires full absorption costing (instead of variable costing) if absorption…

A: Introduction:- i)Absorption costing:- Under the absorption costing, The following costs included in…

Q: What does the following sentence mean? "It is critical to define your product while considering the…

A: "It is critical to define your items before taking into consideration the responses of rivals."When…

Q: Why is the output of a JIT system likely to contain fewerdefective units than the output of a…

A:

Q: In which of the following situations is a company most likely to benefit from implementing ABC? When…

A: The most accurate measurement of costing is ABC based costing then the traditional based one For…

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: Challenges with how direct costs are distributed to cost objects in different companies can give…

A: As the proprietor of a startup or independent company, there are critical perspectives you ought to…

Q: Marginal costing can provide useful information for decision-making. However, there are limitations…

A: There are various limitations of marginal costing few of them are stated below.

Q: Explain the Over head cost control  benefits and drawbacks in manufacturing unit.

A: Cost accounting: A branch of accounting that deals with the calculation of the total cost incurred…

Q: Which of the following statements are false regarding Activity-Based Costing? Select one: O A.…

A: Solution:Correct answer : (d) Activity-based Costing follows the same basic calculation methods as…

Q: Which of the following is NOT true about the cause-and-effect criterion when estimating a cost…

A: The cause and effect analysis is one of the factors for making cost allocation decisions. The cost…

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: Why can full cost accounting lead to wrong management decisions?

A: Full cost accounting says that total costs of the product either it is fixed costs or it is variable…

Q: Process costing systems are used only by companies that manufacture physical products; companies…

A: Companies utilize process costing, a technique that divides the manufacturing process into discrete…

Q: Company X sees a disruption in its supply chain at the same time it sees a decrease in customer…

A: A supply chain network is an organization of individuals, associations, and exercises that move an…

Q: When studying process costing, calculating cost per equivalent unit is the only thing that matters.…

A: Lets understand the basics.Equivalent unit is a physical units expressed in terms of finished goods.…

Q: Which of the following is not a factor to consider when deciding whether to accept a special order?…

A: It is the process of making decisions that involve the management of costs in order to achieve…

Q: What questions should managers answer when considering outsourcing?

A:

Q: Which of the following statements about the use of relevant cost analysis in decision making is…

A: The Cost  play an important role in decision making because it is concern with all the decisions…

Q: Why does the high cost of the system negatively impact the organization's bottom line?

A: The question is based on the concept of bottom line of a company and its relationship with high cost

Q: 1. Which of the following is NOT a key characteristic of Conformance Costs? a) They include expenses…

A: Conformance costs, also known as prevention or appraisal costs, are expenses incurred to ensure…

Q: As a result of cost distortion, some products will be overcosted while other products will be…

A: Solution: Cost distortions occurs when the overhead costs are not properly allocated,  when the…

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: 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: Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that…

A: Cost allocation refers to the process of distributing the single cost among various companies,…

Q: The reasons why a company might NOT engage in CSR iitiatives are because _______.   It is only for…

A: CSR (Corporate Social Responsibility) is the strategy that motivates the organization in…

Q: Give an example of a break-even point for a service based organization

A: In this question, we are required to give an example of a break-even point for a service-based…

Q: assertions below is (are) correct

A: Assertions are the claims made by the management on the items in financial statements.

Q: Why can cost benefit analysis be difficult to carry out?

A: Introduction: Cost benefit analysis can be defined as a process which is undertaken by an…

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.