A chair manufacturer makes custom chairs using hand tools, wood, glue, and varnish. Which of the following statements is true?The costs of wood and glue would be treated as direct costs. Wood, glue, and varnish would all be direct materials. Wood would be accounted for as a direct cost, and glue and varnish as indirect costs. The concepts of direct and indirect costs are not applicable here

Q: of the following would be an example of a direct materials cost? Group of answer choices Engine on…

A: Solution: Direct material costs are those cost which are directly related to product manufacturing…

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Q: For a furniture manufacturing company, the cost of wood used in the produ of desks is best described…

A: Direct materials are those materials which are directly used in production of goods. Indirect…

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A: Period Costs are those costs which can be allocated over a period. Conversion costs is the cost that…

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A: Step 1 Standard costing is an accounting system used by some manufacturers to identify the…

Q: The wood used to make furniture is a variable cost to an enterprise that manufactures and sells…

A: Cost are divided into three parts which are, (1) Variable cost (2) Fixed cost (3) Semi variable cost…

Q: Which of the following items would be most likely to be stepped costs?

A: Cost is defined as the amount to be incurred upon the production of goods or services which can be…

Q: Which of the following is NOT true?   Multiple Choice   Activity-based costing allocates some…

A: Activity based costing allocates the overhead costs to different cost drivers on the basis of…

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A: Compute the activity rate for each of the activity cost pools:- Activity Cost pool Activity…

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A: Fixed expenses remain fixed in a period, variable expenses vary with each production unit.

Q: The table below shows a list of costs for a company that produces custom, professional lacrosse…

A: Product costs are those directly related to the production of a product or service intended for…

Q: Who among the following is not a cost of a product? The expense of the company's fuel. The cost of…

A: Product cost: Product cost is the cost which incurred to manufacture a product. It means it is a…

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A: Operating leverage: It is a ratio that measures the proportion of fixed cost on the total costs and…

Q: Which of the following types of companies would be most likely to benefit from activity-based…

A: activity-based costing -   generally, activity-based costing is used to allocate indirect costs or…

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A: Grouping of similar costs is called cost pooling , the factor that drives the cost of an activity is…

Q: Which of the following would be more likely to use job-order costing rather than process costing?…

A: Job order costing is the one in which cost is allocated as per the customization of the customers.…

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A: The cost of a toy is determined by summing the product of the number of parts needed to make the toy…

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A: Activity-based costing: This costing is an accounting methodology that is based on assigning the…

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Q: Which of the following would be more likely to use process costing rather than job-order costing?…

A: Job costing is a part of cost accounting that tracks the cost and revenues of specific jobs. It is a…

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A: Materials, such as nuts, glue, tape, low-value chemicals, etc. are indirect materials. This is…

Q: 1. Kool Kat Furniture manufactures sofas for distribution to several major retail chains. The…

A: Fixed cost is the cost that does not change with the change in output. Whereas, variable cost is the…

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A: Direct cost refers to the cost which is incurred through firm when performing the core activity of…

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A: Variable cost changes with changing output i.e. higher the sales or production more will be the…

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A: Fixed costs will not change based on the level of production. Variable costs will change with the…

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A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…

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A:

Q: Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate…

A: Activity Rate = Estimated Overhead Cost / Expected Activity

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A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

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Q: An assembly-line used in manufacturing of a car is an example of: Select one: O a. Selling Costs O…

A: Assembly line used in manufacturing of cars is an example of direct labour cost. Because assembly…

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A: Job cost is an estimation of the total cost of a customized order in a specific time period.

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A: Variable cost is the cost that changes with the change of output but per unit variable cost is fixed…

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A:

Q: As a general rule of​ economics, companies should only produce and sell units as long as​ ________.…

A: As a general rule of​ economics, companies should only produce and sell units as long as​ the…

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A: Introduction: The attribution of factory overhead costs to units produced during a reporting period…

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A: A standard cost is an expected cost that a company establishes at the beginning of a fiscal year for…

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.