Answered: The high-low method is used to__. I)…

The high-low method is used to__. I) Value inventory II) Calculate depreciation III) Determine selling price IV) Separate mixed costs

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 13DQ: In assigning costs to goods transferred out, how do the weighted average and FIFO methods differ?

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Question

The high-low method is used to__. I) Value inventory II) Calculate depreciation III) Determine selling price IV) Separate mixed costs

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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Similar questions

In assigning costs to goods transferred out, how do the weighted average and FIFO methods differ?
The focus of a sell or process further decision is Select one: a. incremental cost. b. incremental revenue. c. neither incremental revenue nor incremental cost. d. both incremental revenue and incremental costs.
Explain how cost information differs for profit measurement/inventory valuation requirements compared with decision-making requirements.
Determining the transfer price as the price at which the product or service transferred could be sold to outside buyers is known as the Oa. cost price approach Ob. negotiated price approach Oc. market price approach Od. revenue price approach
A cost - based transfer price considers the cost of producing the goods when determining the price. True False
Which of the following summarizes the weighted average cost flow assumption? Weighted average assumes that costs flow in the reverse order incurred. O Weighted average assumes that cost flow is allocated by the physical weight of items purchased. O Weighted average assumes that costs flow at an average of the costs available. O Weighted average assumes that costs flow in the order incurred.
Which method would produce the same unit cost for Inventory and Cost of Good Sold in periods of rising prices? Select one: a. Weighted Average b. FIFO c. LIFO
Distinguish between the sales value at splitoff method and the NRV method
On a cost-volume-profit graph, when the Total Cost line is higher than the Total Revenue line, the difference represents Select one: O A. a positive return on the investment O B. a net loss O C. net income O D. not enough information is presented
The decision of whether to process products beyond the splitoff process should be based on which of the following? Select one: a. Production cost analysis b. Revenue analysis c. Incremental operating income attainable beyond the splitoff point d. Relevant cost analysis e. Gross margin analysis
Calculation of profit change from changes in sales price, sales volume, variable costs, or fixed expenses may be done using which tool?
1. Variable costing enables more efficient: Cost-volume-profit (CVP) analysis. O External reporting. Financial statement analysis. Physical inventory counts.