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: 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: 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: 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: 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: 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: 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: 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: 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: 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: **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