Using a plantwide factory overhead rate distorts product costs when: a.significant differences exist in the factory overhead rates used across different production departments b.products require different ratios of allocation-base usage in each production department c.Both "products require different ratios of allocation-base usage in each production department" and "significant differences exist in the factory overhead rates used across different production departments" are true. d.Neither "products require different ratios of allocation-base usage in each production department" nor significant differences exist in the factory overhead rates used across different production departments" are true.

Q: Which of the following statements about activity-based costing (ABC) is false? Group of answer…

A: The objective of the question is to identify the false statement about activity-based costing (ABC).

Q: rch and development costs are ordinarily considered factory related overhead costs true false

A: Research and development costs are the costs that are incurred for the better production of the…

Q: Which of the following statements about activity-based costing (ABC) is false? Group of answer…

A: The objective of the question is to identify the false statement about activity-based costing (ABC)…

Q: umerous predetermined overhead rates while traditional uses only one.   The way they assign direct…

A: Correct answer is    Activity based costing may not assign all product costs to units if they are…

Q: APPLY THE CONCEPTS: Determine the total fixed cost Costs that are not tied to changes in production…

A: Fixed costs are those costs which do not change with change in level of activity. For example,…

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A: Step 1: Overhead cost is the cost spent by the business over and above the labor cost. It can be…

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A: The most important difference in cost allocation between service and manufacturing departments lies…

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A: The costing system includes various methods adopted by business entities for evaluating their total…

Q: Please explain thoroughly with examples. Which statement(s) is True/False and why? If none are true,…

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A: The objective of the question is to identify the scenario in which multiple or departmental overhead…

Q: Costs that are not tied to changes in production level across the relevant range are known as "fixed…

A: Total FC always remain constant and does not vary with the production level.

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A: Units produced means the number of units produced or made by the entity during a period and units…

Q: d in the cost of the product b) that it is not really useful for managerial decisions c) that it…

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Q: The following statements refer to organisations that use service costing: (i)  The service provided…

A: Service costing is the cost associated with providing and delivering service. There are difference…

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: possible for units in the beginning Work-in-Process Inventory to also be part of the ending…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

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A: Overheads are the indirect costs of manufacturing the product like indirect material costs, indirect…

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A: Activity based costing is the method used by the entities because it helps in reducing the…

Q: Question Content Area Which of the following is a reason for easy identification and control of…

A: c. Variable costs can be controlled by the operating management.Explanation:a. Fixed costs, such as…

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.