Which of the following best describes costs assigned to the product under absorption costing method? O a. DM, DL and variable manufacturing overhead O b. DM and DL O c. DM, DI, variable manufacturing overhead and fixed manufacturing overhead O d. DM, DI, variable selling and administrative costs & variable manufacturing overhead

Which of the following best describes costs assigned to the product under absorption costing method? O a. DM, DL and variable manufacturing overhead O b. DM and DL O c. DM, DI, variable manufacturing overhead and fixed manufacturing overhead O d. DM, DI, variable selling and administrative costs & variable manufacturing overhead

Name: Which of the following best describes costsassigned to the product un
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Description: Which of the following best describes costsassigned to the product under absorption costingmethod?O a. DM, DL and variable manufacturingoverheadO b. DM and DLO c. DM, DI, variable manufacturing overheadand fixed manufacturing overheadO d. DM, DI, va

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Which of the following correctly describes the term cost driver? a.The primary factor which is correlated with the amount of cost incurred to produce a product b.The total material, labor, and overhead cost of a completed job c.The inflation rate which causes costs to rise d.The initial purchase price of direct materials
Question: In cost accounting, what is the primary purpose of calculating the predetermined overhead rate? A) To allocate indirect costs to products based on a predetermined formula.B) To determine the actual overhead costs incurred during a specific production period.C) To calculate variable costs associated with each unit of production.D) To assess fixed costs that remain constant regardless of production levels.
1.The overhead absorption rate used to allocate manufacturing overhead is calculated by: Select one: a.dividing the total estimated manufacturing overhead costs by the total estimated quantity of the allocation base b.dividing the total estimated manufacturing overhead by the total actual quantity of the cost driver c.dividing the total actual manufacturing overhead costs by the total estimated quantity of the cost driver d.dividing the total estimated quantity of the cost driver by the total estimated manufacturing overhead costs
A cost objective is: Select one: O A. Confined to direct costs O B. The purpose for which costs are accumulated O C. Relevant only to the manufacturing situation O D. All of the above
Advantages and disadvantages of Activity-Based Costing (ABC), Fixed Overhead Absorption, and Throughput Accounting.
Which best describes the flow of overhead costs in an activity-based costing system? Group of answer choices Overhead costs –> direct labor cost or hours –> products Overhead costs –> products Overhead costs –> activity cost pools –> cost drivers –> products Overhead costs –> machine hours –> products
The following statements have been made in relation to activity-based costing: 1. A cost driver is a factor which causes a change in the cost of an activity. 2. Traditional absorption costing tends to underestimate overhead costs for high-volume products. Which of the above statements is/are true? O A. 1 only O B. 2 only OC. Neither 1 nor 2 O D. Both 1 and 2
Under variable costing, which of the following are costs that can be inventoried Select one: O O a. variable manufacturing overhead b. fixed selling and administrative expense c. variable selling and administrative expense d. fixed manufacturing overhead
Classify each cost element as either fixed, variable or mixed Calculate: the variable production cost per unit and the total fixed production overhead Calculate the total variable cost per unit and the total fixed costs
Which costing method is likely to provide the most accurate product cost? a. Volume-based costing using direct labor hours to allocate overhead b. Volume-based costing using a plantwide overhead rate c. Normal costing using a plantwide overhead rate d. Activity-based costing
What is the key difference between Absorption Costing and Marginal Costing? A Absorption Costing treats Manufacturing Overhead as a period cost. B Marginal Costing treats Fixed Manufacturing Overhead as a period cost. C Absorption Costing only considers variable costs to calculate net income. D Marginal Costing only considers variable costs to calculate net income.