QUESTION 2 [12 MARKS]a) Differentiate between relevant and irrelevant costs. Provide examples (4 marks)b) Clearly, describe each the following costing approaches: (8 marks)i. Absorption costingii. Marginal costingiii. ABC Costingiv. Standard Costing

Q: Q1       discuss in detail Cost Accounting, Objectives of Cost Accounting, Essentials of a good…

A: Cost accounting is branch of management accounting in which all costs related with the products like…

Q: Cost assignment and cost accumulation are the two cost accounting system processes that helps…

A: Costing is the method of recording, all cost incurred in process of completing product project and…

Q: 9. Selling and administrative costs are direct costs. O inventoriable costs. O period costs.…

A: Ans. The cost incurred by a business entity is broadly divided into two categories as : i. Direct…

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: A Report a Problem O Revisit Choose the best option Question # 2 With reference to cost…

A: The costs in the production process can be classified on a different basis, for financial reporting…

Q: 0. Which of the following costing method is the oldest method from the following options? a. Life…

A: Concept Life cycle costing               Life cycle costing calculates the cost of the product…

Q: Discuss four example each of relevant cost and irrelevant cost.

A: Relevant cost are those cost which are pertinent to a decision. It is helpful in decision making.…

Q: Q.List four reasons for using standard costs

A:

Q: 5. ABC differs from traditional product costing in which of the following ways? a. Overhead is…

A: A single, volume-based cost driver, such as direct labour hours or machine hours, is used in…

Q: VOLUME BASED COST SYSTEMS Pg 4   Would you please tell me the formula and how to solve for "Total…

A: Manufacturing overhead costs: Manufacturing overhead costs are costs that are not directly related…

Q: None

A: A standard cost is a predetermined cost that serves as a benchmark for measuring performance. Let's…

Q: How do you prepare an absorption and variable costing income statement show a draft or format only.

A: An income statement is prepared by the organization to measure the revenues generated during the…

Q: Explain the difference between full absorption costing and direct costing. How does absorption…

A: Full absorption costing and direct costing are two different approaches to calculating the cost of…

Q: plain 4 objectives of cost accou

A: Cost accounting refers to type of accounting which computes the sum total of expenses involved in…

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: Q1) Below are the examples of cost objects, except: a. product b. services c. department d.…

A: Cost object means something that the company should measure separately as a object which is…

Q: 24 What is Cost object in Activity based costing? a. It is an item for which cost measurement is…

A: answer

Q: Question 2 Direct costs: are incurred to benefit a particular accounting period. are incurred due to…

A: Direct cost are those cost which can be directly link to the manufacturing of goods or rendering of…

Q: 10. Total of all direct costs is termed as A. prime cost B. works cost C. cost of sales D. cost of…

A: Option a: This option is correct because prime cost in accounting refers to the total direct costs…

Q: Which of the following statements is true? * O a. A common cost is one type of direct cost. O b. A…

A: The question is related to Choose which of the statement is true.

Q: True/False    1. Under absorption costing, the company calculates gross margin

A: ABSORPTION COSTING Absorption Costing is a Cost managerial Accounting method in which All Cost…

Q: Which costs assignment method would you use to assign prime costs to a product: a.direct tracing…

A: Prime cost: prime cost is total of direct cost that is direct material, direct labor and direct…

Q: Cost assignment and cost accumulation

A: Cost assignment is a process used in cost accounting system to allocate costs among products,…

Q: What is the main difference between absorption costing and variable costing system. How does…

A: Absorption costing is a method of costing used to account for all manufacturing costs particular to…

Q: Overhead Cost Area Admin and General Info and Telecomm Sales and Marketing Utilities Prop Maint…

A: Overheads means all type of indirect costs being incurred in business. These costs can not be…

Q: What is equity security?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Current Attempt in Progress The underlying principle that absorption costing satisfies is the O…

A: Absorption Costing is a management accounting method for accumulating all costs associated with…

Q: Within a relevant range, costs that increase in direct proportion to volume are:   Question 9…

A: Variable costs are proportional to the level of output within a relevant range. On the other hand,…

Q: 11. Choose the scope of cost accounting that is primarily prepared for different level of…

A: Cost accounting is a process by which costs of products and services are ascertained and controlled.…

Q: For which of the following cost flow methods does generally accepted accounting principles require…

A: Ans. In case of Inventories, it is generally accepted accounting principles is to measure at cost or…

Q: Which costing techniques are related to a predetermined cost as a performance targe and actual…

A: Solution: "Standard costing" are related to a predetermined cost as a performance target and actual…

Q: With respect to Pricing decision in Cost Accounting, state any 4 situations where pricing below…

A: Pricing decision plays an important role in an product sales and growth where the price of the…

Q: In cost accounting, relevant range refers to the range over which a. cost relationships are valid b.…

A: Cost accounting refers to managerial accounting that is related to capturing the total cost of…

Q: What is the difference between a product cost and a period cost? Give three examples of each. 2.…

A: The costs can be classified as classified as product cost, period cost, direct costs or indirect…

Q: Variable costing can also be referred to as: Select one: a. Cost-plus costing

A: Only the variable manufacturing costs are taken into account when using the cost accounting…

Q: . Provide examples of how cost–volume–profit analysis can be used for decision-making. 2. Explain…

A: CVP stands for Cost volume profit analysis refers to finding out how the changes in the fixed costs…

Q: **Question:** Which method is commonly used in accounting to compare actual costs with standard…

A: Activity based costing - It assigns overhead costs to products based on activities they require

Q: Which of the following is not a function of Cost Accounting? a. Control cost b. Reporting to owners…

A: Solution: "Reporting to owners"  is not a function of Cost Accounting. This is because the functions…

Q: Select which of the following requires a separate measurement of cost. a. Activity b. Volume c.…

A: Solution: A cost object is anything for which a separate measurement of costs is desired.

Q: Which method is required by GAAP for external financial statements?     ANSWER       Absorption…

A: Variable costing: In variable costing the fixed manufacturing overheads are not to be considered.…

Q: A changes in direct proportion to changes in the cost-driver level * mixed costs O fixed costs O…

A: If the change in cost and change cost driver level is of direct proportion, it is not fixed cost or…

Q: Question 2 Compare and contrast absorption and marginal costing.

A: The income statement is prepared on the basis of Marginal costing or absorption costing.

Q: Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan…

A: Given: Pension cost = $203,700

Q: Which of the following is subjective approach in costing? a. All of these b. Traditional costing c.…

A: The question is based on the concept of Cost Accounting.