3.Activity based costing (ABC) is a method of allocating the indirect costs of sales commissions to products. A. true b. false

Q: Product costs are also called Select one: O a. Indirect material costs. O b. Indirect Labor costs. O…

A: Cost are basically divided between two category: 1. Product Costs 2. Period costs

Q: The major categories or captions that would appear on an income statement prepared in the variable…

A: Variable costing: Under this method, all cost is divided into two parts. The first part is a…

Q: Which of the following is not a product cost? Multiple Cholce O Direct materlals ) Direct labor…

A: Product cost is that which is not included in the direct manufacturing of the goods. Direct…

Q: Which of the following cost is included in cost of goods sold? customer service cost manufacturing…

A: In layman's language, the Cost of goods sold is nothing but the total cost incurred to produce a…

Q: 1. Prepare an income statement based on the absorption costing concept." 2. Prepare an income…

A: In case of absorption costing, all manufacturing costs are considered as product costs that is both…

Q: TRUE OR FALSE The use of absorption costing facilitates contribution margin approach in preparing…

A: Performa of income statement under absorption costing Particulars  Amount Sales  - Less :…

Q: in intended application between sales life-cycle analysis and life-cycle costing

A: The strategic pricing depends on the product price which it supported the worth it charges to the…

Q: pay is based on sales revenue, while Commission; piece-rate Piece-rate, commission Exempt, nonexempt…

A: Sales revenue is the amount of revenue received from sale of goods and services in the business.…

Q: Which of the following statements is true? a. Indirect materials and indirect labor are included in…

A: The true statement is "Indirect materials and indirect labor are included in the manufacturing…

Q: Which of the following statements is true? Multiple Choice Product costs and variable costs are…

A: Product cost means the cost which are incurred to create a product that is intended for sale to the…

Q: Which of the following statements is true of activity-based costing? O a. Activities are the cost…

A: Activity based costing is a type of costing system in which all indirect costs or overhead costs are…

Q: When refining a costing system, the desire to identify direct costs, is primarily drive by the fact…

A: While refining a costing system the main purpose for direct costs is to identify and classify as…

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

A: in Activity-based costing many numbers of cost pools. In activity-based costing, a product margin…

Q: An allocation base! O a. is a measure used to assign prime costs to products and services O b.…

A: An allocation base is the basis on which Cost accounting allocates overhead costs.  An allocation…

Q: concerning ABC (activity-based costing) and ABM (activity-based management):          i.   ABM…

A: ii.  ABC cannot be used in the service industries    iii. ABC is used in conjunction with ABM…

Q: Under full absorption costing, which of the following are included in product costs? Only variable…

A: The absorption costing system is also known as the full costing system. It is allowed to be used by…

Q: 2. Discuss the differences between the gross profit figures calculated in part 1 compared with those…

A: 2. The gross profit from activity based costing system is given below. Activity Tablets Laptops…

Q: Under variable costing system only those costs of production that vary (variable) with production…

A: Variable costing is also called marginal costing. Under variable costing all variable cost that is…

Q: If fixed manufacturing overhead costs are released from inventory under absorption costing, whatdoes…

A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…

Q: What are these equations? c.Under absorption costing, what is the cost of goods sold? d.Under…

A: Hey, since there are multiple subparts posted, we will answer the first three subparts. If you want…

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: First: When reconciling variable costing and absorption costing net operating income, fixed…

A: Answer: option c. Only the second statement is true Explanation: Under absorption costing, a portion…

Q: Consider the following statements regarding traditional costing system: I – Overhead costs are…

A: Introduction  Traditional costing system may be defined as that type of costing system in which…

Q: In CVP Analysis, total costs are defined as costs derived from product costs and period costs. TRUE…

A: Cost-volume-profit analysis is used to determine how the company's profit has been affected due to…

Q: Standard costs are preset costs for delivering a product or service under normal conditlons. True or…

A: Lets understand the basics. Management prepares the standard cost sheet which contain details about…

Q: Marginal Costing refers to product costing methods that exclude ________ from product costs a)…

A: Using marginal costing, only variable costs are included in product cost.

Q: pic is about Cost Accounting. Please check the picture for the problem. Requirement: Determine the…

A: =  Sales - purchases of raw materials- opening inventories + closing inventories - direct labor -…

Q: Define cost accounting, what are the two basic types of product costing. Explain any one of them…

A: Cost accounting is that branch of accounting in which the cost to be incurred for the manufacturing,…

Q: 1-Why is it important to distinguish cost incurrence from locked-in cost? 2- How do companies…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Includes gross profit on the income statement. Absorption costing only Generally provides the most…

A: Introduction: Income statement: All incomes and expenses are shown in income statement. It tells the…

Q: Which of the following statements is true? (You may select more than one answer.)a. A common cost is…

A: Opportunity cost is the value of the next best alternative over the selected alternative.The loss of…

Q: A mixed cost contains: a variable element and a fixed element. both selling and administrative…

A: Mixed costs are that cost which contain a portion of both fixed and variable costs. Common examples…

Q: tatement is true or false, and correct the false tatement(s): Manufacturing cost is called period…

A: Manufacturing cost is the cost incurred to manufacture units . It includes direct material , direct…

Q: 6- Absorption costing makes an apportionment of indirect costs so that the products absorb these…

A: There are two types of costing methods that are being used in cost accounting. One is absorption…

Q: :Under activity-based costing, the process of assigning costs to cost objects is called First stage…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: (a) Explain the difference between the throughput and absorption costing methods.

A: "Since you have asked multiple questions, we will solve only first question for you. If you want any…

Q: If fixed manufacturing overhead costs are released from inventory under absorption costing, what…

A: Overhead Costs: Overhead costs are business expenses that cannot be associated or traced directly…

Q: Which of the following is NOT a reason for companies to assign costs to products or services? O to…

A: Generally companies will asign costs to products and services for decision making purpose

Q: :Under activity-based costing, the process of assigning costs to cost objects is called First stage…

A: Activity-Based Costing:- It is a method of assigning overhead and indirect costs such as salaries…

Q: The three major components of cost of goods sold are: a. Direct labor, direct material, and profit…

A: Cost of goods sold means cost of producing the goods which are being sold by the organisation. This…

Q: Under which costing system non-manufacturing costs may be included in ?calculating product costs…

A: There are different types of costing systems namely activity based costing system, absorption…

Q: A 'product' cost is a cost that is classified by:    a. behavior       b. function       c.…

A: The cost incurred on production directly or indirectly related to production is said to be product…

Q: 2- The ABC costing method * a) is based on the Pareto curve b) is absorption costing c) allows…

A: Activity based costing means where the product is valued on the basis of actual direct material ,…

Q: Which of the following statement is false?         Multiple Choice   Fixed manufacturing overhead…

A: Under the absorption costing method, the fixed manufacturing overhead is allocated to units produced…

Q: When pricing a product or service, managers must consider which of the following? a. Only period…

A:

Q: Define the terms Cost Costing Cost Accounting

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

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.