Some costs that possibly could be traced directly to cost objects are nonetheless classified as indirect costs because: Multiple Choice Such costs cannot be traced to objects in a cost-effective manner. Such practice results in a more accurate accumulated cost for the object Generally accepted accounting principles require some costs to be treated as indirect. All of these answers are correct.

Q: explain why GAAP requires full absorption costing (instead of variable costing) if absorption…

A: Introduction:- i)Absorption costing:- Under the absorption costing, The following costs included in…

Q: Is corrective action always necessary when actual costs are higher than standard costs

A: A company which manufactures products and goods keeps a sharp eye on its costs. When the actual cost…

Q: Any cost that is avoidable is relevant for decision purposes. O A. True O B. False

A: Relevant costs are those costs that are affected by the specific management decision being…

Q: he following statements are incorrect, except a. Cost is the same with expense. b. All costs…

A: Cost accounting refer to the outflow of money for the purpose of acquiring assets, producing goods…

Q: In your own words explain the meaning of: a. differential revenue, b. differential cost, and c.…

A: In accounting, Differential means the difference between the two alternatives or two output levels,…

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: Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that…

A: Cost allocation refers to the process of distributing the single cost among various companies,…

Q: Indirect and common costs often make up a significant portion of the cost of a product. All of the…

A: Indirect costs are expenses that support the overall operation of a business and must be allocated…

Q: Which type of cost occurs only with the implementation of a particular alternative? O unavoidable O…

A: Lets understand the basics.Unavoidable costs are cost which will not change due to any decision…

Q: 6) Explain the difference between an inventoriable (Product) cost and a period cost. What potential…

A: Financial statements are statements which states the business activities performed by the company .…

Q: True or false A cost center manager does not have the ability to produce revenue.

A: Cost centre manager involves in the work of cost related to the product he has not an ability to…

Q: not easily traceable and are allocated to a cost object u not abbreviate or add any extra spacing in…

A: Direct costs refer to those expenses which can be directly related to a product or a service.

Q: What are: Relevant / irrelevant / Differential Costs Relevant / irrelevant / Differential Revenues…

A: Relevant / Irrelevant / Differential Costs: Relevant Costs are the cost which are relevant in…

Q: Which of the following statements is false? Multiple Choice O In general, the term expense is used…

A: In accounting we use different terms and words on a regular basis like revenue, costs, expenses,…

Q: in management accounting strandard cost ： definition . types of strands and cost . benefit .…

A: Management Accounting: In Management  account or managerial account, directors use information in…

Q: The simplifying assumption that costs and volume vary in straight-line relationships makes the…

A: Cost Volume Profit Analysis is a method of costing that has an impact on the varying levels of cost…

Q: 'Direct costs are treated differently under the ABC method than under the traditional full costing…

A: Costs consists of two main types – direct costs and indirect costs.   Direct costs include costs…

Q: Which of the following accounting principles or conventions is contradictory to the GAAP requirement…

A: As per matching principle of accounting, all expenses of a particular period are matched with the…