Which of the following are true regarding activity-basedcosting? a. A primary goal of using ABC is a more useful alloca-tion of manufacturing overhead to product lines. b. Under ABC, direct labor hours are never used to allo-cate overhead costs to activity pools or product lines. c. The use of ABC is indicated when it is suspected thateach of a firm’s product lines consumes approximatelythe same amount of overhead resources but the current allocation scheme assigns each line a substantially dif-ferent amount.

Q: How are the avoidable fixed MOH and the unavoidable fixed MOH calculated? I see that they equal the…

A: Fixed manufacturing overheads (MOH) is the amount of all indirect expenses or costs which are…

Q: If manufacturing overhead has been underallocated during the period, then which of the following is…

A: Lets understand the basics. Manufacturing overhead is a total of the indirect materials, indirect…

Q: The reason for charging indirect costs to cost centres is to: A. Calculate the cost of direct…

A: Lets understand the basics. Indirect costs are cost which are not directly related to product or…

Q: Factory overhead is typically a(n): Multiple Choice mixed cost. variable cost. irrelevant cost.…

A: Factory overhead It is the costs incurred during the manufacturing process and not including the…

Q: a. TRADITIONAL - What is traditional cost allocation for manufacturing overhead? Give an example of…

A: For ascertaining the accurate product cost or total production cost of the manufacturing…

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: First: Activity-based management seeks to eliminate waste by allocating costs to products that waste…

A: Solution: First statement is false as "Activity-based management does not seeks to eliminate waste…

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: Time-driven ABC requires estimates of onl

A: Time-Driven Activity-Based Costing-: Time-driven ABC allows managers to document their expenses on…

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,…

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: Manufacturing overhead: Group of answer choices includes direct materials, indirect materials,…

A: Includes direct materials, indirect materials, indirect labor, and factory depreciation.This choice…

Q: Which of the following is not a reason to allocate overhead? Some overhead costs are seasonal and…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: Which statement is FALSE? Activity-Based Costing includes non-manufacturing costs in product costs,…

A: Job order costing is applicable especially for a company producing identifiable separate distinct…

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: Overhead needs to be allocated only to "jobs" but not to "processes

A: Overheads represents expenditure on labour,materials that cant be economically identified with…

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: 5  Why may departmental overhead rates NOT correctly assign overhead costs?   Select one: a.…

A: c. Because of the over-reliance on volume as a basis for allocating overhead costs where products…

Q: 2. Sunshine Company sells custom made surf boards in California. The finance manager has supplied…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

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.

Q: 1. Which of the fol absorption costing and variable costing Equipment depreciation. B) Variable…

A: Solution: Unit product cost under variable costing = Direct materials + Direct labor + Variable…

Q: Overhead costs are overapplied if the amount applied to Work in Process is: a. less than actual…

A: The overhead costs refer to the costs that are incurred in the operating and manufacturing process,…

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

A: The Answer

Q: 19) Which of the following is false? Material on a job is classifies as__________. A) direct or…

A: Job costing refers to a costing method that is suitable for the ascertainment of cost of the…

Q: Consider the following statements regarding traditional costing system: I – Overhead costs are…

A: Introduction  Traditional costing system may be defined as that type of costing system in which…

Q: When direct labor is a relatively small amount compared to material and overhead, it is often…

A: Overhead:- It refers to the ongoing expenses incurred in the production of goods indirectly. It…

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: 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: Which of the following statements about overhead allocation based on volume alone is correct?…

A: When overhead costs are allocated based solely on volume (such as units produced), it doesn't…

Q: A volume-based rate is an appropriate overhead application base when:     a. Direct material…

A: Overhead is the amount of expense which is incurred to make the products. It is the part of cost of…

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: 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: XYZ is considering to adopt an activity based costing systems. They found that an activity-base a.…

A: Cost accounting is one of the important branch of accounting under which different type of costs and…

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: :Under activity-based costing, the process of assigning costs to cost objects is called First stage…

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

Q: Which of the following statements is false?

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

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.