Provide 2 differences between traditional and activity based costing system.

Q: In tabular form, provide 3 similarities between activity based costing method and traditional method…

A: Activity based costing and traditional costing are two important methods used to allocate the…

Q: List at least two positive and two negative features of standard costing systems.

A: Standard Costing:   It is an accounting system that is used by organization to identify the…

Q: 6. What the effect of JIT Systems on Product Costing?

A: Just-in-time, or JIT, is a technique of inventory management or control in which labor, materials,…

Q: Q- 2: and variable costing? What is the basic difference between absorption costing

A: “Since you have posted a many questions, we will solve first question for you. To get the remaining…

Q: In the blank next to the following terms, place the letter A through D corresponding to the best…

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: Explain the role of unit cost in task order pricing.

A: Task orders refer to the contract made for specific and separate orders. These are the small…

Q: "Standard costing improves the control function" comment

A: Standard costing is one of the technique of accounting.  Standard costing is the method which…

Q: TRUE OR FALSE A cost function is useful only in an activity-based costing system.

A: Answer:   A cost function is useful only in an activity-based costing system.     The statement…

Q: Distinguish between two methods of allocating common costs.

A: Cost Allocation Method: The cost allocation method is the method by which the costs to be assigned…

Q: Which of the following is true regarding cost drivers? A-Cost drivers cause an activity's cost…

A: The concept of activity-based costing requires identifying the cost pool, cost driver, number of…

Q: TRUE OR FALSE Activity-based costing method is also known as transaction-based costing.

A: Solution: True. Activity-based costing method is also known as transaction-based costing.

Q: a. what are the primary differences between traditional and activity-based costing?

A: Traditional costing and Activity based costing are two types of costing methods that are being used…

Q: 5. Provide the benefits of using absorption costing for internal reporting. explain the answer with…

A: Answer:-  Absorption costing meaning:- A type of costing known as "absorption costing" includes all…

Q: Explain any TWO advantages and TWO disadvantages of standard costing analysis

A: Standard costing is the way to allocate the costs to the activities like for materials, labor or…

Q: Explain the difference between the variable and absorption costing methods.

A: Under Variable Costing method, only variable costs are considered which includes only variable cost…

Q: Explain the differences of single overhead rate; multiple overhead rate and activity based costing.…

A: Single, multiple overhead rate and activity based costing are methods to allocate cost to the…

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: Explain the similarities between ABC and traditional costing .

A: Traditional Costing is the method of allocation of cost based on a single cost driver; whereas under…

Q: Differentiate between contract costing and service costing. Provide your answer in table form with 4…

A: Contract costing is a costing method used in contracts. Service costing is a costing method used in…

Q: "Standard costing improves the control function"explain with more information and examples

A: Standard costing is part of Cost Accounting which is used by some manufacturing concerns to identify…

Q: Outlines TWO advantages and TWO disadvantages of both variable (marginal) AND absorption costing…

A: Variable Costing:- SOLUTION:- Variable costs are costs that change as the quantity of the good or…

Q: 2. What are the key reasons for product cost differences between simple costing systems and ABC…

A: Financial accounting and cost accounting are two significant branches of accounting. Financial…

Q: costing concentrates on managing costs by making as many small savings as possible. ...

A: 1. The correct answer is: (A) Kaizen    Kaizen costing is a cost management technique used to…

Q: By use of relevant examples, differentiate between the following: a. Relevant costs and Non-relevant…

A: In general words, cost means money that is spent to gain something. In accounting terms, the cost is…

Q: 2. What are the key differences in process costing and job costing.

A: Costing: An estimation of the cost of products and services is called costing. It helps to determine…

Q: what are the similarities between absorption costing method and activity based costing method

A: Introduction:-   Absorption costing is a method of cost accounting that includes all direct costs…

Q: Under activity-based costing, second stage allocation would involve: O a. Defining activity measures…

A: Steps involved in Activity-based costing - Step 1 - identify and classify the activities involved…

Q: Distinguish between the following: i. allocation and apportionment  ii. job and batch costing

A: The costing methods are used to determine the cost. The company is required to determine the cost to…

Q: Marginal costing and absorption costing are two product costing methods used in the manufacturing…

A: a) Overheads are the expenditure which cannot be conveniently traced to or identified with any…

Q: TRUE OR FALSE The last step in activity-based costing system is the selection of cost driver

A: Cost driver is used to compute the overhead rate per cost driver.

Q: How many cost pools are in an activity-based costing system?

A: Activity-Based Costing: Activity-Based Costing refers to the allocation of the factory overheads…

Q: 4. Describe the Steps for Implementing Activity-based costing

A: Activity-based Costing system uses different drivers for allocation of different overheads.

Q: Absorption Costing approach

A: Absorption costing refers to method of accounting in which the cost of manufacturing are absorbed by…

Q: List three factors that are important in selecting cost drivers for an ABC system.

A: Cost driver: It is one of the measurements that help the company in tracing directly the number of…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.