Which of the following is NOT correct about the classifications of costs? Select one: a. On the basis of time of computation, costs are classified into historical costs and pre-determined costs. b. Costs are classified as product costs or period costs according to their behaviour with respect to physical capacity usage of the company. c. Costs are classified into direct costs and indirect costs on the basis of their identifiability with cost units or jobs or processes or cost centres. d. Costs behave differently when level of production rises or falls, and based on this, the costs are classified as fixed, variable, or mixed costs.

Q: Which of the following is the best definition of product costs? a. Product costs are those costs…

A: Cost refers to amount or value which has to be incurred in order to purchase or produce a product…

Q: How does a product cost differ from a general, selling, and administrative cost? Give examples of…

A: Product Cost: Product costs are the expenses directly associated with making a particular product.…

Q: Which one of the following is a fixed cost? a. Raw material costs b. Salary with commission c.…

A: A fixed cost is one that does not adjust in the short term, even though a company's sales volume or…

Q: When assigning indirect costs to a cost object, an ideal cost-allocation base measures ________. A)…

A: A measure of input or output that defines the amount of cost to be allocated to a specific cost…

Q: Which of the following does NOT form a part of Total cost? A. Production overheads B. Factory…

A: Total cost involves all the cost incurred in order to reach a particular level of output.

Q: Which of the following describes the term ‘cost unit’?   A basis for cost classification A…

A: Cost unit is the per-unit cost incurred to produce the product. It includes both costs i.e fixed…

Q: Which of the following statements is true about byproduct costing?    Byproduct costs are allocated…

A: Byproduct costing is the method of allocating costs to the main product and byproducts in a…

Q: Why are product costs sometimes called inventoriable costs? Describe the flow of such costs ina…

A: Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare the…

Q: are all manufacturing costs that are related to the cost object but CANNOT be traced to that cost…

A: The costs which are not directly related to production process are called Period costs.These are not…

Q: Under direct/marginal costing, a unit of product includes which costs? direct material, direct…

A: Marginal costing is the method of determining the operating income. It separately shows the variable…

Q: costing is seen as part of the total life-cycle costing approach, in that cost savings are sought at…

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

Q: Costs that can be traced to a unit of product but not in a cost-effective way: (A) Direct Cost (B)…

A: TRACEABLE COST  All Direct Cost are Traceable cost Such as Direct Material & Direct Labour.…

Q: Research and development costs are classified as: O a. Inventoriable costs. O b. O c. O d. Product…

A: A cost accounting system is a system of accounting that is helpful for the internal management to…

Q: There are three categories of costs: fixed costs, variable costs and semi-variable costs. Which of…

A: Semi-variable cost includes both fixed and variable costs. In this, most of the part is fixed but…

Q: Identify whether each of the following costs should be classified as product costs or period costs.…

A: Cost Accounting is a process of identification, classification, measurement, and assignment of costs…

Q: Please explain the statement below (T/F) thoroughly with examples illustrating the answer.  "To…

A: "Activity-based costing is one of the costing methods that is structured and designed in such a way…

Q: Which one of the following is another name for product costs? Select one: a. Direct costs b. Period…

A: Product cost means the cost of producing one unit of finished goods.

Q: Cost allocation is a general term that refers to identifying accumulated costs with, or tracing…

A: Answer:- Cost allocation:- Identification, agglomeration, and assignment of costs to cost objects…

Q: 1 Cost object: Bed 2 Timber acquisition costs 3 board acquisition cost 4 5 6 The cost of acquiring…

A: The question asked to classify the cost items. We need to classify the cost into production, and,…

Q: actors affecting the classification of a cost as direct or indirect include: OA. cost behaviour…

A: Direct Cost:- Costs that are directly related to the production of goods are called direct costs…

Q: Identify whether each of the following costs should be classified as product costs or period costs.…

A: Product Costs: Product Costs means the direct costs incurrend for production of a product. Product…

Q: Indicate whether each cost is: A. Fixed or Variable b. Selling, General/Administrative, or…

A: Fixed Cost: The cost which does not tend to increase or decrease with the change in number of goods…

Q: ABC Firm reported the following for the final three months of 2020: October November December Units…

A: The costs incurred in a business can be categorised differently on the basis of mixed cost, variable…

Q: CVP o

A: Cost in accounting refers to the amount, that is incurred to generate revenue for the business. The…

Q: Which of the following correctly describes the term cost driver? a.The primary factor which is…

A: Cost driver is the driver cause of which the cost is incurred. On the basis of this we find the…

Q: With respect to cost classifications for manufacturers:a. What is the total manufacturing cost?b.…

A: For a manufacturer,  Total manufacturing cost = Direct Material Cost + Direct Labour Cost + Variable…

Q: Define the terms Cost Costing Cost Accounting

A: The Question has covered the various Concept related to the costing. The Detailed Explanation of…

Q: Costs that must be allocated in order to be assigned to a product or department are called direct…

A: The amount of money spend or the loss of opportunity of investing money to produce a good or service…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.