:The traditional (Volume-based cost systems) tend t low-volume products and under-cost high-volume products .a C ost low-volume products and over-cost high-volume products b C ost low-volume products and over-cost high-volume products .c C st low-volume products and under-cost high-volume products .d C

:The traditional (Volume-based cost systems) tend t low-volume products and under-cost high-volume products .a C ost low-volume products and over-cost high-volume products b C ost low-volume products and over-cost high-volume products .c C st low-volume products and under-cost high-volume products .d C

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Product costs under variable costing are typically: Question 1 options: lower than under absorption costing higher than under absorption costing the same as with absorption costing higher than absorption costing when inventory increases
TRUE OR FALSE The general principle in determining the number of cost pools is that a separate cost pool should be used for the cost of an activity if the pattern of demand for it varies across products in proportions different from those reflected in existing cost pool drivers.
Using terminology Match the following terms with the correct definitions:
2..
Which of the following choices correctly denotes the data needed to allocate joint costs under the relative-sales-value method? Sales Value of Product at Split-Off Separable Cost Sales Value of Product After Processing Beyond Split-Off A. Yes Yes No B. Yes Yes Yes C. Yes No No D. No Yes Yes E. No No Yes Choice A Choice D Choice C Choice B Choice E
8) A single indirect-cost rate distorts product costs because A) there is an assumption that all support activities affect all products in a uniform way B) it recognizes specific activities that are required to produce a product C) competitive pricing is ignored D) it assumes all costs are product costs
TRUE/FALSE. Write T' if the statement is true and 'F' if the statement is false. 17) Target costing sets prices by computing an average cost and then adding a desired markup.
Which of the following is a correct definition of the margin of safety? The excess of contribution margin over fixed costs The excess of gross margin over target income 0 The excess of sales revenue over the breakeven point The excess of ner income over all costs (both variable and fixed
Variable costing can also be referred to as: Select one: a. Internal costing b. Cost-plus costing c. Absorption costing d. Marginal costing
Which of the following statements is true? O a. Activity-based costs per unit are always greater than volume-based costs per unit. O b. All the statements are false. O c. Different cost allocation methods are constructed so that they typically result in the same or similar estimates of how much it costs to make a product. O d. Activity-based costing typically provides less information about product costs while requiring more recordkeeping. O e. Volume-based costing has typically resulted in overcost for high-volume products and undercost for low-volume products. 11:40 ere to search A D a dx ENG 22-05-2021 hp delete home end an Ed 96 & 7\ 6. + backspace mum lock RO 7 V home g up K enter 50 pause B t shift 2Y end alt ctrl ins
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6- Absorption costing makes an apportionment of indirect costs so that the products absorb these costs. The main problem with this procedure can be pointed out: *a) only considers fixed costsb) the apportionment is arbitraryc) disregards variable costsd) only considers variable costs