State the three features of costing system.

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Answer 1

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Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 4, Problem 2Q

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State the three features of costing system.

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Pinecrest Manufacturing produces only one product. The company's normal capacity is 25,000 units per year, and the unit sales price is $6. Relevant Costs: Variable Costs per Unit: . Materials: $1.50 • Direct Labor: $1.80 • Factory Overhead: $0.70 • Marketing Expenses: $0.40 Total Fixed Costs: • Factory Overhead: $20,000 • Marketing Expenses: $6,000 Administrative Expenses: $8,000 Required: Compute the following: a) The break-even point in units of product b) The break-even point in dollars of sales c) The number of units that must be produced and sold to achieve a profit of $12,000 d) The sales revenue required to achieve a profit of $12,000

A Statement of Financial Position (Balance Sheet) shows liabilities of $140,000 and assets of $275,000. The Income Statement shows income of $95,000 and expenses of $50,000. Equity is: a. $55,000 b. $135,000 c. $175,000 d. $415,000 MCQ

Answer 2

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Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 4, Problem 2Q

To determine

State the three features of costing system.

Expert Solution & Answer

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Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 4, Problem 2Q

To determine

State the three features of costing system.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 4, Problem 2Q

To determine