Unit-level measures can distort product costing because the dernand for overhead resources nay be driven by batch-level or product-sustaining activities. Select one: True False Previous page Next page Jumn to WE

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: Traditional product - costing systems are structured on multiple, volume - based cost drivers. True…

A: Overhead means the amount of expenses incurred indirectly to produce the goods. These expenses…

Q: Which of the following statements are false regarding Activity-Based Costing? Select one: O A.…

A: Solution:Correct answer : (d) Activity-based Costing follows the same basic calculation methods as…

Q: The three major differences between process and job order costing systems are those relating to:

A: Job Order Costing Process order Costing The Job Order Costing is based upon the manufacturing cost…

Q: Target costing is only utilized to determine the breakeven amount.

A: Target cost: In a competitive market, companies cannot set prices because the supply and demand…

Q: A cost driver is a factor, such as machine-hours, that is used to allocate direct costs to a…

A: Direct costs:Direct cost is simply a cost or price that can directly related to the production of…

Q: When studying process costing, calculating cost per equivalent unit is the only thing that matters.…

A: Lets understand the basics.Equivalent unit is a physical units expressed in terms of finished goods.…

Q: When comparing absorption costing to variable costing, all of the below are disadvantages of…

A: Solution: When comparing absorption costing to variable costing, all of the below are disadvantages…

Q: the allocation base for applying overhead product the allocation base for applying overhead product…

A: The concept of activity-based costing requires identifying the cost pool, cost driver, number of…

Q: Activity-based costing tends to pass the cost-benefit test for companies with  A. Operations that…

A: Activity based costing is a type of costing system in which costs are assigned or allocated to all…

Q: activity-based costing systems have a tendency to distort product costs. True or False?

A: The overhead is applied to the production on the basis of predetermined overhead rate. The…

Q: product-costing systems are structured on multiple volume-based cost drivers. True or False?

A: Traditional Product-costing system refers to the concept of cost allocation under which the the…

Q: Which method of process costing is almost always used in practice? Multiple Choice a) Weighted…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Which of the following is not a characteristic of a process costing system? Multiple Choice…

A: Cost accounting is one of useful branch of accounting, under which all type of costs and expenses…

Q: TRUE OR FALSE In activity-based costing systems, costs are not classified as either direct or…

A: Answer:   In activity-based costing systems, costs are not classified as either direct or indirect…

Q: The high-low method used in determining costs can be used to estimate the cost queation using just…

A:

Q: What is time-driven activity based management (TDABC)

A: TDABC stands for time-driven activity-based costing. It is a costing method based on activity and…

Q: t is known that a new fee will increase if the order made by the customer increases. Based on this…

A: Under ABC system, the costs are divided on the grounds of various types of cost drivers utilized.…

Q: Setting up a time-based activity-based costing system does not require extensive interviews with…

A: Solution: Time-driven ABC enables managers to report their costs on an ongoing basis in a way that…

Q: A scatter graph is used to test the assumption that the relationship between cost and activity level…

A: There is a systematic relationship between costs and activity level. In accounting we see that the…

Q: Marginal costing is usually deployed when decisions about volume are being made. Discuss the…

A: Monetary Accounting has appeared with the advancement of huge scope business   as business entities.…

Q: Which of the following statements is true? O a. Activity-based costs per unit are always greater…

A: The volume based costing represents the cost allocation to a single cost pool. The high volume…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.