6 To measure controllable production inefficiencies, which ofthe following is the best basis for a company to use inestablishing the standard hours allowed for the output ofone unit of product?Select one:a. The hours per unit that would be required for thepresent workforce to satisfy expected demand over thelong run.○ b. Engineering estimates based on attainableperformance.Оc. Engineering estimates based on idealperformance.d. Average historical performance for the last severalyears.

Option a: This option is incorrect because although it is one of the methods, it is not the best…

Answered: To measure controllable production…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 3P: Scattergraph method Using the data in P4-2 and a piece of graph paper: 1. Plot the data points on...

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Please calculate the change in operating income due to cost leadership. Label each component as to whether the amount has a favorable effect on operating income or unfavorable effect. (Label each variance as favorable (F) or unfavorable (U).
The production manager wants to achieve real and permanently decrease in the unit cost of the product. As you are the cost accountant of the company, which of the following concepts explains about real and permeant decrease in the unit cost of the product? a. Cost estimation b. Cost analysis c. Cost control d. Cost reductio
A price variance measures: Group of answer choices How good a company is in keeping its unit costs of material and labor within standards. The difference between current and previous production costs. How well a company uses its materials and labor to produce a unit of output. The difference between its production costs and its competitors’ production costs.
1. How would a 5% sales commision paid to a sales personnel be classified in a manufacturing company? fixed, period cost variable, product cost fixed, product cost direct labor, product variable, period cost 2. Atrue statement about cost behavior is that: fixed costs are constant on per unit basis and change in total as activity changes. variable costs are constant on per unit basis and are constant in total as activity changes. variable cost change on per unit basis and change in total as activity changes. variable costs are constant on per unit vasis and change in total as activity changes. fixed costs are constant per unit basis and constant in total as activity changed
Kindly answer all questions: 1.) Cost behavior is considered linear whenever a straight line is a reasonable approximation for the relation between cost and activity. A. True B. False 2.) Which of the following is an example of a cost that is variable with respect to the number of units produced? A. rent on administrative office building B. rent on factory building C. Salaries of top marketing executives D. direct labor cost, where the direct labor force is adjusted to actual production of the period 3.) Fixed costs are constant in total amount over the relevant range of operations. A. True B. False 4.) The cost function derived by the simple least squares method: A. must be tested for minimum and maximum points. B. is parabolic. C. is linear. D. is curvilinear.
Fixed costs depend on the: Select one: a. amount of resources acquired b. amount of resources used c. volume of sales d. volume of production Which of the following types of information are used in management accounting? Select one: a. financial information b. information focused on the long term c. nonfinancial information d. All of these answers are correct The production component of the value chain refers detailed planning, engineering, and testing of products and processes. Select one: True False The general term used to identify both the tracing and the allocation of accumulated costs to a cost object is: Select one: a. conversion costing b. cost assignment c. cost tracing d. cost accumulation. Period costs: Select one: a. are treated as expenses in the period they are incurred b. are directly traceable to products c. are also referred to as manufacturing overhead costs d. include direct labor Period costs: Select one: a. are treated as expenses in the period they are incurred b.…
Lancelot Group of Companies would like to estimate its cost function for proper cost management across its business lines. The accountant will.most likely segregate the costs on the basis of • A Degree of averaging into total, average, and unit cost O B. Behavior of cost to changes in activity level to unit and fixed cost • C. Degree of averaging into variable and fixed components O D. Cost-volume relationship into variable and fixed components Reser Selection
The manager of the manufacturing unit of a company is responsibie for the costs of the manufacturing unit. The president is in the process of deciring whether to evaluate the manager at the manufacturing unit by the average cost per unit or the vartable cast per unit Quality and umely delivery would be used in coruncion with the cust meesure lo rewerd the maneger Required: a. What problems are associated with using the average cost per unit as a pertormance measure b. What problems are associated with using the variable cost per unt as a performance measure?
Please solve a and b
The analysis of variance is an essential management accounting approach used to determine the cost of a product and its profitability. Managers use variance analysis to make judgments regarding the expenses of labour and materials that are incurred as a result of the production of a product or the provision of a service. In relation to the above, critically appraise five (5) differences between fixed and variable costs along with examples of each cost. Critically evaluate the purposes and features of marginal costing?
Managerial Accounting EThe break-even point is that level of activity where اخترأحد الخيارات a. total contribution margin equals the sum of variable cost plus fixed cost O p/ sales revenue equals total variable cost O C. Target profit is zero O d variable cost equals fixed cost O e. sales revenue equáls fixed cost O nship of total factory overlhead Y to directlabor hours (X) the following relationship was found AS5 The $2000 in the equation represents
Least-Squares Regression; Scattergraph; Comparison of Activity Bases The Hard Rock Mining Company is developing cost formulas for management planning and decision-making purposes. The company’s cost analyst has concluded that utilities cost is a mixed cost, and he is attempting to find a base that correlates with the cost. The controller has suggested that tons mined might be a good base to use in developing a cost formula. The production superintendent disagrees; she thinks that direct labor-hours would be a better base. The cost analyst has decided to try both bases and has assembled the following information: Required: 1. Using tons mined as the independent variable, prepare a scattergraph that plots tons mined on the horizontal axis and utilities cast on the vertical axis. Using the least-squares regression method, estimate the variable utilities cost per ton mined and the total fixed utilities cost per quarter. Express these estimates in the form Y = a + bX. 2. Using direct…

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