rue/false 1) Activity-based costing information is recorded on a job sheet each month which is later posted to the general ledger at the end of the year. ________ 2. A factory production manager’s salary is considered an organizational sustaining activity cost. ________ 3. First stage allocation is the process by which overhead costs are assigned to activity cost pools in an activity-based costing system.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
True/false
1) Activity-based costing information is recorded on a job sheet each month which is later posted to the general ledger at the end of the year.
________ 2. A factory production manager’s salary is considered an organizational sustaining activity cost.
________ 3. First stage allocation is the process by which
________ 4. Interviewing operating-level managers is a poor way of determining cost pools in first-stage allocation.
________ 5. Production accountants applying activity rates to cost pools in activity-based costing will be able to calculate
________ 6. The process of budgeting often takes place during the process of evaluation.
________ 7. Preparation of the
________ 8. The self-imposed budget is the same as a top-down budget.
________ 9. The Chief Executive Officer of a corporation usually has final authority in approving the
________10. In any department of a company, it is the Chief Fiscal Officer who has the initial responsibility for the departmental budget.
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