Answered: The cost centre investment centre is a…

The cost centre investment centre is a business sector that is responsible for all of its income and costs. Manufacturing centre profit centre

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Companies in the UK that use Activity-Based Costing method of management accounting.

A: Activity-based costing (ABC) is a method of management accounting that is used to measure the costs…

Q: Explain the Role of activity based costing technique in improving organisational performance.

A: SOLUTION- ACTIVITY BASED COSTING- IT IS USED TO GET A BETTER GRASP ON COSTS ALLOWING COMPANIES TO…

Q: How should a company decide on the number of cost pools it should use to allocate costs to…

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With the…

Q: Define process costing system and provide one example of a business using this system. The subject…

A: Definition: When a significant number of similar units are made, a process costing method accrues…

Q: activities performed by another firm or individual

A: Option "b" is wrong because responsibility centers are units within the firm, not another firm or…

Q: how useful is the activity based costing information isto the internal users in the organisation?…

A: Activity based costing is an approach to the costing and monitoring of activities and costing final…

Q: Activity based costing is utilized by manufacturing companies that assist them in determining…

A: Machine setups, maintenance requests, power consumption, purchase orders, quality checks, and…

Q: Cost behavior Costs Value Chain O Cost drivers

A: Answer: Cost behavior is defined as the changing nature of cost dependent on any units. Costs are of…

Q: 1. What types of costs are allocated? What is a support department? What is a producing department?…

A: Allocation refers to distribution of total overhead cost to the departments that have actually used…

Q: how Cost Managemnt decision-making plays a role in the decision-making and success of the company?

A: Cost management decision-making is a critical aspect of any business. It involves the process of…

Q: Fixed costs depend on the: Select one: a. amount of resources acquired b. amount of resources used…

A: Since you have posted multiple questions, we will do the first one for you. Please post the other…

Q: Describe a cost center, profit center, and investment center that one manufacturing company might…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: The cost hierarchy can be helpful to Roberta in managing its business through:

Q: is commonly suggested that a management accounting system should be capable of supplying different…

A: Solution- Costs , their purpose and…

Q: how the aborption costing method and the activity based costing method impact business oganizations

A: Absorption costing and activity-based costing (ABC) are two methods of determining the cost of…

Q: What is the nature of cost management and how beneficial it is for the business?

A: Introduction: Cost management is the process of planning and controlling a business's running…

Q: 14. In activity-based costing is assumed that indirect costs are generated by: A. Indirect labour B.…

A: Since multiple questions have been posted, only the first question will be solved as per the…

Q: w product cost information is use

A: Product Cost: Product costs are costs that are incurred to make a product that's intended available…

Q: For each of the following support departments, identify a cost driver that could be used for…

A: A cost driver seems to be the source of a cost that has an impact on the overall cost. For instance,…

Q: What is the similarities and defference between cost accontant, management accountant and fanincial…

A: Cost accountant deals with ascertainment, allocation, recording and analysis of accounting data. It…

Q: Discuss two potential application of the activity based costing system in decision-making, to the…

A: Activity based costing method helps in allocating overhead cost of products based on different…

Q: Identify and describe the three types of product costs in a manufacturing firm.

A: Product cost involves the cost of making a product. These prices include direct labor, direct…

Q: Companies that produce a variety of products need a costing system that allocates costs based on the…

A: Companies that produce a variety of products need a costing system that allocates costs based on the…

Q: Discuss what you believe is the most important difference in how cost allocation differs in service…

A: Costing is defined as a mechanism used to determine the expenses paid by the industry while…

Q: Question 2: Discuss what may be the issues in using process costing to estimate the cost of the…

A: Process costing is a significantly costing system to measure, monitor and control under different…

Q: Prime cost for the business is calculated as

Q: Illustrate the application of cost object in your company. Cover each of the following types of cost…

A: Cost object:- It is an accounting term used for all those things for which cost is associated or…

Q: Contrast activity-based costing (ABC) with activity-based management (ABM). Question…

A: ABC system of cost accounting is based on activities , which are considered any event, unit of work…

Q: Cost allocation is a general term that refers to identifying accumulated costs with, or tracing…

A: Answer:- Cost allocation:- Identification, agglomeration, and assignment of costs to cost objects…

Q: Explain cost concepts it is relevant for the company to be aware of in decision situations such as.…

A: Here discuss about the details of the various costs which are incurred to the business entity which…

Q: How cost accounting is useful for external user as Government ,and customer etc,support your answer…

A: Cost accounting gives complete details of the cost incurred in the manufacturing of the product and…

Q: Consider the following statements concerning value chain analysis: 1. It recognises the total…

A: Value chain analysis is an analysis of the different business activities and processes that are…

Q: Describe the purpose of managerial accounting.

A: Managerial Accounting: Managerial Accounting is mainly concerned with internal users of the…

Q: Classify the following manufacturing costs of Business Solutions as either (a) variable (V) or fixed…

A: Answer: a: Variable cost b: Direct cost

Q: Discuss the role of cost accounting in relation to various department in organisation.

A: Introduction: Cost accounting is a form of managerial accounting that aims to capture a company's…

Q: Discuss any two differences between the traditional costing system and the actively-based costing…

A: Traditional Costing…

Q: Which is the reason a company would implement activity based costing

A: Activity based costing is the modern technique of allocation of overheads. In this, overheads are…

Q: Explain the Role of life cycle costing in improving organisational performance

A: Life cycle costing: It refers to the lifetime costs that is incurred on an item or an asset over its…

Q: Definition of Management Accounting along with any other relevant concepts and the relationship…

A: Accounting is the process of recording, classifying, analyzing, interpreting, and communicating…

Concept explainers

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.

Question

The cost centre investment centre is a business sector that is responsible for all of its income and costs. Manufacturing centre profit centre.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Explanation

VIEW

Step 3: Conclusion

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Classify the following manufacturing costs of Business Solutions as either (a) variable (V) or fixed (F)and (b) direct (D) or indirect (I). Taxes on assembly workshop
Classify the following manufacturing costs of Business Solutions as either (a) variable (V) or fixed (F)and (b) direct (D) or indirect (I). Electricity for workshop
The ____ costing system is the most useful system for management in planning ang controlling business activities such as in the use of CVP analysis and inventories management. A. Absorption B. variable C. job order D. standard
In Classification Of Cost, What Is A Business Situational Example of the ff: By Nature Or Traceability: Direct Costs & Indirect Costs By Functions By Behavior: Fixed, Variable, Semi-Variable By Control Ability: Controllable & Uncontrollable Costs By Normality: Normal Costs & Abnormal Costs By Time: Historical Costs & Predetermined Cost By Decision Making Costs
Companies benefit greatly from the use of a standard cost system, and the statement?
In the context of a local/regional organization, explain the idea of “cost object”. Discuss the four “responsibility centres”, in the selected organization, which are linked to responsibility accounting. What are the main drawbacks of responsibility accounting? Support your answer with relevant examples.
Question 1 The term "cost" means: all of these. the price paid for a raw material. the wage paid to a worker. the price charged by an entity for its services. Question 2 The sequence of activities that add value to the organization are: the value chain. the value processes. the chain of production events. the strategic cost initiatives.
Define the terms Cost Costing Cost Accounting Cost Accountancy Management Accounting Financial Accounting Product vs Period Cost Manufacturing vs Non-Manufacturing Direct vs Indirect Cost Opportunity cost Sunk cost Differential cost Prime cost Conversion Cost
How is a scatter diagram used to identify and measure the behavior of a company’s costs?
TRUE OR FALSE Activity center is a unit in an organization for which management wants the costs of a set of activities be reported separately.
Explain why support costs are allocated to departments.