Prime Costs
Q: Direct materials would be considered a? Group of answer choices Step Cost Mixed Cost Fixed Cost…
A: Hi Student Since there are multiple questions,we will answer only first question. If you want…
Q: Second-stage allocation in Activity-based Costing includes assigning costs to; O a. Activity rates…
A: Activity based costing allocates costs to cost pool as a first stage objective
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: Cost Behavior Ch. 6 Please provide the Break-Even formula and give an example and explain the…
A: Break-even is considered as break-even point.
Q: Production cost is same as manufacturing cost. True False Can be true, can be false
A: Production cost: it is the cost incurred by management to produce a specific quantity of goods. it…
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: True (t) or False (f) ______ LIFO is inappropriate where unit costs tend to decrease as production…
A: It is known as LIFO conformity rule that if a company used LIFO for tax purpose then it must also…
Q: Management Accounting) If fixed production costs are not allocated to manufactured products, this…
A: SOLUTION FIXED COST INCLUDES THE RENT OR MORTGAGE PAYMENT YOU PAY FOR YOUR FACTORY AND OFFICE…
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: For costs that vary with production level in the short term, the cost driver will be: a. Service…
A: Solution- Under Activity Based Costing, the costs are classified as short term variable costs and…
Q: Complete the following statements with one of the terms listed here: You may use a term more than…
A: The objective of the question is to fill in the blanks with the appropriate cost terms from the list…
Q: The total cost of a cost object can only include the direct costs that are directly traced to that…
A: The total cost of a cost object includes both costs i.e costs that are directly traced and…
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: the allocation base for applying overhead product the allocation base for applying overhead product…
A: The concept of activity-based costing requires identifying the cost pool, cost driver, number of…
Q: What are the different types of Costs? (all type of Costs please like direct cost, indirect, fixed,…
A: Cost of a product is the amount incurred in the process of bringing the product to its final state.
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: TRUE OR FALSE When absorption costing is used for external reporting, variable costing can still be…
A: There are various approaches which can be prepared for reporting purpose. Two of which are variable…
Q: The reason for some costs to be mixed in nature is: 1. presence of sunken cost in the cost…
A: Mixed costs includes the nature of fixed costs as well nature of variable cost. Some part of the…
Q: Under-applied manufacturing overhead costs are always the result of which of the following…
A: Actual overhead is the actual expense incurred related to the overhead during the period whereas…
Q: Which of the following about the residual switch cost is true? a. The residual switch cost decreases…
A: The residual switch cost refers to the performance decrement that remains even after accounting for…
Q: Describe the behavior of fixed and variable costs as activity levels change. Use graphs to…
A: Answer:- Fixed cost meaning:- Fixed costs are expenses that remain constant regardless of whether…
Q: Why do most companies use normal or standard costing? After all, actual costing gives the actual…
A: The standard costing is a costing system that is used to estimate the expenses of the production…
Q: When compared to the traditional costing system, an advantage of ABC is that it is inexpensive to…
A: A costing system, also known as a cost account system, is a system or frame used by associations…
Q: 7.14 How can deviations be used to analyze costs in separate areas of activity?
A: Cost variance analysis is used under both traditional and activity based costing methods. The only…
Q: Costs that change in total but not proportionately with changes in the activity level are mixed…
A: The costs incurred during the production process can be classified as fixed, variable and mixed…
Q: tandard Costing and What is the formula for predetermined overhead rate
A:
Q: 1. Which of the following is a disadvantage of the Variable Costing method? A. The data available…
A: A cost accounting technique known as "variable costing" treats fixed manufacturing costs as period…
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: product-costing systems are structured on multiple volume-based cost drivers. True or False?
A: Traditional Product-costing system refers to the concept of cost allocation under which the the…
Q: Which of the following statements are true? 1. The sum of all manufacturing costs except for direct…
A: The manufacturing costs also called product cost includes direct materials, direct labor and…
Q: What does it means when the Overhead rates in the direct method have a figure which is higher than…
A: Overheads: It refers to the business indirect expenses that are required to run a business activity.…
Q: Which of the
A: A prime cost is the total direct costs of production, including raw materials and labor.. Indirect…
Q: Explain why all costs are controllable by someone at some time but in the short run some costs may…
A: Cost accounting: The process of identifying, calculating and recording the cost related to the…
Q: The high-low method used in determining costs can be used to estimate the cost queation using just…
A:
Q: When direct labor is a relatively small amount compared to material and overhead, it is often…
A: Overhead:- It refers to the ongoing expenses incurred in the production of goods indirectly. It…
Q: Write “True” if the statement is true and write “False” if the statement is false A fixed cost is…
A: Variable cost includes: Direct material Wages Direct labor cost Commission on sales Fixed cost…
Q: prime cost are indirect materials ,indirect labor and other indirect expenses * True False
A: Solution- A prime cost is the total direct costs of production, including raw materials and labor.…
Q: The reason for some costs to be mixed in nature is: Presence of sunk cost in the cost structure.…
A: Mixed Cost:- This cost is a combination of the fixed cost and variable cost. It means that one…
Q: Please explain step by step how to solve the question for cost allocation by using the double…
A: Cost allocation is the as the name suggests the allocation or in other words, the distribution of…
Q: In Activity-based costing, activity measures may include all of the following except: O a. All of…
A: Activity based costing allocates the overhead costs on basis of cost drivers/activity driver
Q: Differences between fixed overhead and fixed cost. Like if im running a resturants, give me a…
A: Fixed Overhead Fixed overhead refers to the indirect costs or expenses that remain relatively…
Step by step
Solved in 3 steps
- Q6) Manufacturing overhead costs are easy to trace and can be ignored while calculating total costs. Select one: True FalseWhich among the following is not true about traditional costing system? a. This method allocates greater proportion of overheads to high volume products b. This method avoids the phenomenon of product cost cross subsidization c. This method allocates smaller proportion of overheads to low volume products d. This method leads to cost smoothing'Direct costs are treated differently under the ABC method than under the traditional full costing method.' Is the above statement true or false? A. True B. False
- Direct costs are classified by controllability. True False Can be true, can be falseA fixed cost is a cost that does not vary in the short run with a specified activity. The defining characteristic of a fixed cost is that it depends on the amount of a resource that is acquired rather than the amount that is used. For this reason fixed costs are often called capacity-related costs. Write 300 to 400 words that explain the difference between fixed costs and variable costs. The example may be of a company you’ve worked with or another company that has these types of costsI keep seeing this "P/A" thing in Cost Analysis problems but I can't figure out what it is or how to use it. Excel doesn't seem to recognize it. What do I need to do?
- Throughput costing • Treats all cost as period cost except for direct materials • Is very suitable for companies where labor and overaged are variable cost • Results in higher income than does variable costing when production exceeds sales • None of the aboveDirect materials are considered as product costs. * True False Can be true, can be false I don't have an ideaConversion Costs are composed of direct labor and overhead. * True False Can be true, can be false I don't have an idea
- [S1] A cost is either direct or indirect. The classification changes if the costs object changes. [S2] Manufacturing overhead is an indirect cost with respect to units of product. a. both are trueb. both are falsec. S1 is trued. S2 is trueUnder which costing system non manufacturing costs will not be included in calculating product costs? a. Absorption costing and Variable costing systems. b. Variable costing system only. C. Absorption costing system only. d. Activity based costing system only. e. None of the given answersPLEASE ANSWER ALL Write “True” if the statement is true and write “False” if the statement is false. Fixed cost is constant in total amount regardless of changes in activity level within the relevantrange. Cost function is an express that mathematically links costs, their behavior, and their cost driver. As volume decreases within the relevant range, variable cost per unit remains the same andfixed cost per unit increases.
