Data Analytics For Accounting
19th Edition
ISBN: 9781260375190
Author: RICHARDSON, Vernon J., Teeter, Ryan, Terrell, Katie
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 3, Problem 10DQ
Compare and contrast the profiling data approach and the development of standard cost for a unit of production at a manufacturing company. Are they substantially the same, or do they have differences?
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Which of the following statements is true? Select
one:
a. The most complex of the cost estimation
methods is the high-low method.
b. In approximating the cost function, the
account analysis classifies costs based upon
an industrial engineer's evaluation of
production methods, and material, labor, and
overhead requirements.
c. The high-low method is used to derive an
estimated line of cost behavior by graphically
connecting the two cost amounts identified
with the highest and lowest volume levels.
d. Engineering approach approximates cost
function by classifying each account as either
variable or fixed based on the analyst's
knowledge of how the account behaves.
e. The high-low method of deriving an
estimated cost line uses all the data points
Discuss the difference between cost accumulation, tracing and allocation. Since all manufacturing cost are eventually included in the unit cost of a product, what difference does it make? Discuss why the distinction matter in the calculation of CVP or other metrics.
What are the similarities in calculating the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold? What are the differences? Why are these three costs each uniquely helpful to management accountants?
Chapter 3 Solutions
Data Analytics For Accounting
Ch. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Prob. 4MCQCh. 3 - In general, the more complex the model, the...Ch. 3 - In general, the simpler the model, the greater the...Ch. 3 - _____ is a discriminating classifier that is...Ch. 3 - Prob. 8MCQCh. 3 - Models associated with regression and...Ch. 3 - Prob. 10MCQ
Ch. 3 - What is the difference between a target and a...Ch. 3 - What is the difference between a supervised and an...Ch. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - How might classification be used in approving or...Ch. 3 - Prob. 8DQCh. 3 - How does fuzzy match work? Give an accounting...Ch. 3 - Compare and contrast the profiling data approach...Ch. 3 - Exhibits 3-1, 3-2, 3-3, and 3-4 suggest that...Ch. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - An auditor is trying to figure out if the goodwill...Ch. 3 - How might clustering be used to explain customers...Ch. 3 - Why would the use of data reduction be useful to...Ch. 3 - How could an investor use XBRL to do an analysis...Ch. 3 - Prob. 7P
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- What is the main difference between the physical units and weighted average methods of joint cost allocation?arrow_forwardIn what way do the cost of production summaries in Chapter 6, prepared using the weighted average cost method, differ from the cost of production summaries presented in Chapter 5? What is the reason for this difference?arrow_forwardWhat is the most important purpose of the cost of production report?arrow_forward
- What advantage does the FIFO cost method have over the average cost method relative to providing information for cost control?arrow_forwardShow the comparison of cost between Activity-based-costing and traditional costing system and percentage of variation in manufacturing cost for each product.Highlights the differences in accuracy and complexity of these 2 methods derive from earlier calculations.arrow_forwardConsumption ratios are useful in determining: A. the existence of product-line diversity. B. overhead that is incurred at the unit level. C. if overhead-producing activities are being utilized effectively. D. if overhead costs are being applied to products. E. if overhead-producing activities are being utilized efficiently.arrow_forward
- Cost accounting is an area of accounting concerned with cost determination, cost control and cost analysis. Which of the following is a description of cost control? a. Refers to the use of cost data by management in decision making. b. None of the above c.Refers to the comparison of standards set for costs per unit and with the figures per actual operations so that remedial measures may be adopted if needed. d.Refers to the accumulation of cost data by products, process or services to be able to arrive at a unit cost.arrow_forwardFactors affecting the classification of a cost as direct or indirect include: A. cost behaviour patterns, cost drivers, and relevant ranges. B. materiality of the cost, available information-gathering technology, and design of operations. C. materials, labour, and factory overhead D. unit costs, inventory production stage, and contractual agreements.arrow_forwardOn assigning costs to different products. What is the benefit of cost assignment? How does this aid the organization in financial decisions?arrow_forward
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