Define cost pool, cost tracing, cost allocation, and cost-allocation base.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 4, Problem 4.1Q

Define cost pool, cost tracing, cost allocation, and cost-allocation base.

Expert Solution & Answer

To determine

Costing:

Costing is a technique used in cost accounting to determine the cost of a product. With the optimum use of costing, a company can reduce the cost burden and increase the profit margin.

To explain: cost pool, cost tracking, cost allocation and cost allocation base.

Answer to Problem 4.1Q

Cost pool: The cost accountant make individual group of all the indirect cost used in an item.
Cost tracking: Cost tracking means the historical record of all the information of cost as it is useful to decide the selling price.
Cost allocation: The process of assigning the cost to the cost object is cost allocation.
Cost allocation basis: It is a factor on which the cost accountant allocates the overhead cost.

Explanation of Solution

In cost pool, the production department makes groups of the individual cost to simplify the cost accounting process.
Cost tracing is a method in which the cost accountant records each and every cost related to the product, so that it is easy to determine the selling price of the product.
Cost allocation is simply to allocate cost for the specific cost object.
Cost allocation basis is to allocate cost on the basis of units for example the cost allocation basis is number of machine hours.

Conclusion

Thus, the meaning of cost pool, cost tracking, cost allocation and cost allocation base is explained above.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

02:04

Students have asked these similar questions

How much is the cost of goods sold for the year?

Calculate it's gross profit??

General Accounting Question need help with this question

Answer 2

Textbook Question

Chapter 4, Problem 4.1Q

Define cost pool, cost tracing, cost allocation, and cost-allocation base.

Expert Solution & Answer

To determine

Costing:

Costing is a technique used in cost accounting to determine the cost of a product. With the optimum use of costing, a company can reduce the cost burden and increase the profit margin.

To explain: cost pool, cost tracking, cost allocation and cost allocation base.

Answer to Problem 4.1Q

Cost pool: The cost accountant make individual group of all the indirect cost used in an item.
Cost tracking: Cost tracking means the historical record of all the information of cost as it is useful to decide the selling price.
Cost allocation: The process of assigning the cost to the cost object is cost allocation.
Cost allocation basis: It is a factor on which the cost accountant allocates the overhead cost.

Explanation of Solution

In cost pool, the production department makes groups of the individual cost to simplify the cost accounting process.
Cost tracing is a method in which the cost accountant records each and every cost related to the product, so that it is easy to determine the selling price of the product.
Cost allocation is simply to allocate cost for the specific cost object.
Cost allocation basis is to allocate cost on the basis of units for example the cost allocation basis is number of machine hours.

Conclusion

Thus, the meaning of cost pool, cost tracking, cost allocation and cost allocation base is explained above.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

02:04

Answer 3

Textbook Question

Chapter 4, Problem 4.1Q

Define cost pool, cost tracing, cost allocation, and cost-allocation base.

Expert Solution & Answer

To determine

Costing:

Costing is a technique used in cost accounting to determine the cost of a product. With the optimum use of costing, a company can reduce the cost burden and increase the profit margin.

To explain: cost pool, cost tracking, cost allocation and cost allocation base.

Answer to Problem 4.1Q

Cost pool: The cost accountant make individual group of all the indirect cost used in an item.
Cost tracking: Cost tracking means the historical record of all the information of cost as it is useful to decide the selling price.
Cost allocation: The process of assigning the cost to the cost object is cost allocation.
Cost allocation basis: It is a factor on which the cost accountant allocates the overhead cost.

Explanation of Solution

In cost pool, the production department makes groups of the individual cost to simplify the cost accounting process.
Cost tracing is a method in which the cost accountant records each and every cost related to the product, so that it is easy to determine the selling price of the product.
Cost allocation is simply to allocate cost for the specific cost object.
Cost allocation basis is to allocate cost on the basis of units for example the cost allocation basis is number of machine hours.

Conclusion

Thus, the meaning of cost pool, cost tracking, cost allocation and cost allocation base is explained above.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

02:04

Answer 4

Textbook Question

Chapter 4, Problem 4.1Q

Define cost pool, cost tracing, cost allocation, and cost-allocation base.

Expert Solution & Answer

To determine

Costing:

Costing is a technique used in cost accounting to determine the cost of a product. With the optimum use of costing, a company can reduce the cost burden and increase the profit margin.

To explain: cost pool, cost tracking, cost allocation and cost allocation base.

Answer to Problem 4.1Q

Cost pool: The cost accountant make individual group of all the indirect cost used in an item.
Cost tracking: Cost tracking means the historical record of all the information of cost as it is useful to decide the selling price.
Cost allocation: The process of assigning the cost to the cost object is cost allocation.
Cost allocation basis: It is a factor on which the cost accountant allocates the overhead cost.

Explanation of Solution

In cost pool, the production department makes groups of the individual cost to simplify the cost accounting process.
Cost tracing is a method in which the cost accountant records each and every cost related to the product, so that it is easy to determine the selling price of the product.
Cost allocation is simply to allocate cost for the specific cost object.
Cost allocation basis is to allocate cost on the basis of units for example the cost allocation basis is number of machine hours.

Conclusion

Thus, the meaning of cost pool, cost tracking, cost allocation and cost allocation base is explained above.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

02:04

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Costing:

Costing is a technique used in cost accounting to determine the cost of a product. With the optimum use of costing, a company can reduce the cost burden and increase the profit margin.

To explain: cost pool, cost tracking, cost allocation and cost allocation base.

Answer to Problem 4.1Q

Cost pool: The cost accountant make individual group of all the indirect cost used in an item.
Cost tracking: Cost tracking means the historical record of all the information of cost as it is useful to decide the selling price.
Cost allocation: The process of assigning the cost to the cost object is cost allocation.
Cost allocation basis: It is a factor on which the cost accountant allocates the overhead cost.

Explanation of Solution

In cost pool, the production department makes groups of the individual cost to simplify the cost accounting process.
Cost tracing is a method in which the cost accountant records each and every cost related to the product, so that it is easy to determine the selling price of the product.
Cost allocation is simply to allocate cost for the specific cost object.
Cost allocation basis is to allocate cost on the basis of units for example the cost allocation basis is number of machine hours.

Conclusion

Thus, the meaning of cost pool, cost tracking, cost allocation and cost allocation base is explained above.

Answer 8

Expert Solution & Answer

To determine

Costing:

Costing is a technique used in cost accounting to determine the cost of a product. With the optimum use of costing, a company can reduce the cost burden and increase the profit margin.

To explain: cost pool, cost tracking, cost allocation and cost allocation base.

Answer to Problem 4.1Q

Cost pool: The cost accountant make individual group of all the indirect cost used in an item.
Cost tracking: Cost tracking means the historical record of all the information of cost as it is useful to decide the selling price.
Cost allocation: The process of assigning the cost to the cost object is cost allocation.
Cost allocation basis: It is a factor on which the cost accountant allocates the overhead cost.

Explanation of Solution

In cost pool, the production department makes groups of the individual cost to simplify the cost accounting process.
Cost tracing is a method in which the cost accountant records each and every cost related to the product, so that it is easy to determine the selling price of the product.
Cost allocation is simply to allocate cost for the specific cost object.
Cost allocation basis is to allocate cost on the basis of units for example the cost allocation basis is number of machine hours.

Conclusion

Thus, the meaning of cost pool, cost tracking, cost allocation and cost allocation base is explained above.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Costing:

Costing is a technique used in cost accounting to determine the cost of a product. With the optimum use of costing, a company can reduce the cost burden and increase the profit margin.

To explain: cost pool, cost tracking, cost allocation and cost allocation base.

Answer 12

Answer to Problem 4.1Q

Cost pool: The cost accountant make individual group of all the indirect cost used in an item.
Cost tracking: Cost tracking means the historical record of all the information of cost as it is useful to decide the selling price.
Cost allocation: The process of assigning the cost to the cost object is cost allocation.
Cost allocation basis: It is a factor on which the cost accountant allocates the overhead cost.

Answer 13

Explanation of Solution

In cost pool, the production department makes groups of the individual cost to simplify the cost accounting process.
Cost tracing is a method in which the cost accountant records each and every cost related to the product, so that it is easy to determine the selling price of the product.
Cost allocation is simply to allocate cost for the specific cost object.
Cost allocation basis is to allocate cost on the basis of units for example the cost allocation basis is number of machine hours.