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 is true regarding by products?   a. Process costing is the only…

A: Solution: "Job order costing systems may have instances where by-products result from the production…

Q: Which of the following might be a reason that allocating overhead under an activity-based approach…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

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: A company uses the repeated distribution method to reapportion service department costs. The use of…

A: Repeated distribution method is a cost accounting technique in which costs of each service…

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: A stapler manufacturer uses a single plantwide predetermined overhead allocation rate to allocate…

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

Q: When product diversity exists, basing overhead allocation on traditional overhead costing- Will…

A: Traditional overhead costing, also known as traditional cost accounting, is a method of allocating…

Q: Which type of manufacturing cost (direct materials, direct labor, variable factory overhead, fixed…

A: Cost of goods manufactured as per Absorption costing =  Direct material + Direct labor + Variable…

Q: Which of the following statements is false ? a. Volume-based costing has typically resulted in…

A: There are two methods of costing that are in place generally. One is volume based costing and other…

Q: Which of the following statements is incorrect? O a. ABC systems lead to higher allocation of…

A: ABC and traditional costing are two commonly used cost accounting systems. Both have their own…

Q: Discuss what is the most important difference in how cost allocation differs in service and…

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

Q: Traditional Volume-based costing allocates indirect product costs based on the volume of output,…

A: Following is the answer to given question

Q: Which of the following statements is false?   I. Absorption Costing Method differs from Variable…

A: Absorption costing, now and again called “complete costing,” is a managerial accounting approach for…

Q: Typically, less accurate product costing information is produced by assigning costs…

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

Q: process c

A: Given: To define the incorrect statement about the job order costing systems and the process costing…

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

A: Cost accounting is the method which followed by a manufacturing business in order to estimate the…

Q: Multiple or departmental overhead rates are considered preferable to a single plantwide overhead…

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

Q: Which of the following statements is not correct concerning multiple ?overhead rate systems A…

A: The multiple overhead rate system is the one where different departments have their own rates of…

Q: ?Which of the following statements is false Activity-based costing typically provides less…

A: In order to solve in this question, we need to analyse the given statement one-by-one.

Q: When the units produced is greater than the units sold, A. some variable manufacturing overhead…

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

Q: If the activities that generate overhead costs vary between departments and products, adopting a…

A: The Answer

Q: Under traditional costing systems, which calculate a single predetermined overhead rate using…

A: Answer: Under traditional costing systems, which calculate a single predetermined overhead rate…

Q: single predetermined overhead rate using volume-based drivers,

A: If a single predetermined overhead rate based on volume-based drivers is used for all products, cost…

Q: ?Which one of the following is not correct regarding activity-based costing Activity-based costing…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: CLEAR MY CHOICE Which of the following statements is false? O a. Volume-based costing has typically…

A: Volume based costing and activity based costing are two type of costing methods that are used for…

Q: One of the disadvantages of the departmental and the plantwide overhead rate methods is that OA…

A: An overhead rate method is a cost accounting technique used by businesses to allocate and apply…

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…

Q: Departmental overhead rates applied based on a volume measure such as direct labour-hours or…

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

Q: Accounting Direct labor or machine hours may not be the appropriate cost driver for overhead in all…

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

Q: Assigning manufacturing overhead to a specific job is complicated by all of the following except:

A: Assigning manufacturing overhead to a specific job is complicated by all of the factors listed in…

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…

Q: Job order costing and process costing : a. both allocate applied manufacturing overhead cost to…

A: The correct option is  a. both allocate applied manufacturing overhead cost to product cost

Q: Which of the following is false? Multiple Cholce Overhead costing accuracy is Improved by the use of…

A: A departmental rate of overhead is a charge that is based on the units of production made by various…

Q: Which of the following statements is false?

A: The predetermined overhead rate (POHR) is calculated using estimated manufacturing overhead costs…

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.