Activity based costing system differs from traditional costing systems in the treatment of, A) direct labor costs B) direct material costs C) prime costs D) indirect costs

Q: Which of the following best describes costs assigned to the product under absorption costing method?…

A: Absorption costing includes cost of a unit of product as direct material, direct labor and both…

Q: Direct labor is included in the computation for the cost classified as     Group of answer choices…

A: Prime cost = Direct material + Direct labor Product cost = Direct material + Direct labor +…

Q: Which is not a step in analyzing the cost driver for manufacturing overhead?A. identify the costB.…

A: All indirect expenses involved during in the manufacturing process are referred to as manufacturing…

Q: Identify the following as fixed costs (F), variable costs (V), or mixed costs(M). direct labor…

A: A cost that changes, in total dollar amount, with the change in the level of activity is called…

Q: Marginal Costing

A: Option a is wrong because marginal costing is not a technique of cost reduction. Cost reduction…

Q: TRUE OR FALSE A cost function is useful only in an activity-based costing system.

A: Answer:   A cost function is useful only in an activity-based costing system.     The statement…

Q: Which of the following would NOT be considered an activity for the purposes of an activity-based…

A: Introduction: Activity based costing: Its also called As ABC method. According to the Actual…

Q: TRUE OR FALSE Activity-based costing method is also known as transaction-based costing.

A: Solution: True. Activity-based costing method is also known as transaction-based costing.

Q: are all manufacturing costs that are related to the cost object but CANNOT be traced to that cost…

A: The costs which are not directly related to production process are called Period costs.These are not…

Q: Explain why standard costing is more suitable for controlling the cost of unit-level activities

A: Standard costing is a cost accounting method in which predetermined levels of sales, production,…

Q: Which of the following statements is true? Multiple Cholce Varlable costing treats direct materials…

A: The period costs are the costs which are expensed in the period they are incurred. Example selling…

Q: How is the distinction between direct and indirect costs handled differently under volume-based…

A: Activity-based costing: It is a method that helps in finding the activities performed by a company…

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: The term relevant range in cost accounting means the range over which a. Cost may fluctuate. b. Cost…

A: Cost accounting is that branch of accounting in which all costs incurred on manufacturing and…

Q: Which of the following statements is true? * O a. A common cost is one type of direct cost. O b. A…

A: The question is related to Choose which of the statement is true.

Q: Product costs are also callec Direct costs. Overhead costs

A: Given: 1. Product costs are also called: *Direct costs.Overhead costs.Manufacturing overhead…

Q: Comparison between ABC and Traditional costing

A: Traditional costing is also written as volume based costing. Under this method, overheads are…

Q: otal Manufacturing costs are also known as product costs. Which of the following best describes…

A: Solution Concept Total manufacturing cost basically means the cost that is required to manufacture…

Q: Which of the following is NOT a period cost? Select one: O a. manufacturing costs. O b. general and…

A: Product cost means the cost of producing one unit of finished goods. Period cost means the cost that…

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: 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: Under activity-based costing, second stage allocation would involve: O a. Defining activity measures…

A: Steps involved in Activity-based costing - Step 1 - identify and classify the activities involved…

Q: In case product produced or jobs undertaken are of diverse nature, the system of costing to be used…

A: SOLUTION EXPLANATION- JOB COSTING IS AN ACCOUNTING METHOD DESIGNED TO HELP YOU TRACK THE COST OF…

Q: Which of following is not correct about normal costing? Select one: O a. Product cost includes the…

A: Option a (Product cost includes the applied indirect manufacturing cost) is not correct about normal…

Q: Which of the following is not considered a product cost? Select one: a. direct labor b. direct…

A: Product cost includes all the cost incurred to manufacture the product.

Q: What is the primary difference between the two cost accounting, systems regarding the accumation of…

A: Cost accounting system is a framework that guides the firm to calculate their cost and helps in…

Q: What types of costs should not be assigned to products in an activity-based costing system?

A: Activity-based Costing Activity-based costing is a method of costing which identifies the activities…

Q: Explain the main conceptual issue under variable costing and absorption costing regarding the timing…

A: Variable Costing:   The variable costing is a method used to allocate the fixed manufacturing…

Q: ost classifications used for assigning costs to cost objects include: Multiple Choice Variable cost…

A: Cost Classification Determining the cost in the organisation is one of the important part in the…

Q: The primary difference between variable costing and absorption costing is in variable costing,…

A: Absorption Costing: “Absorption costing is a method that allocates “direct labor, direct materials,…

Q: "Under variable costing system, the unit product cost includes:"     "Direct materials, direct…

A: Variable costs are those costs which changes directly with change in level of activity. If level of…

Q: Under activity-based costing, second stage allocation would involve: a. Calculating activity rates O…

A: ABC costing: Here the costs of products are to be allocated by the activities using cost pools. It…

Q: Which of the following best defines standard costing?   a. It is the same as actual costing but…

A: The method of calculating the cost of a manufacturing process is known as standard costing. It's a…

Q: Activity Based Costing classified costs into A. Three Groups - material, labour and overhead B.…

A: Under Activity-based costing, indirect costs are divided on the basis of the activity among the…

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: How are the current practices of life cycle costing and target costing in cost management different…

A: The target costing is inferred by deducting the overall revenue from the market selling value, that…

Q: why is adjustment necessary for under and over absorption of overheads in the absorption costing…

A: Here discuss about the details of adjustment which are needed for the over and under absorption of…

Q: In activity-based costing, some manufacturing costs may be excluded from product costs TRUE FALSE

A: Lets understand the basics. Activity based costing is as the name suggest allocate cost based on the…

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: Which of the following statements is true? (You may select more than one answer.)a. Conversion costs…

A:

Q: Under activity -based costing , second stage allocation would involve a. Calculating activity rates…

A: Activity based costing system is a costing system which assigns costs on the basis of activities and…

Q: What is the main difference between activity-based costing and the theory of constraints? When is…

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With…

Q: Under variable costing, a unit of product includes which costs? A. direct material, direct labor,…

A: Variable costing: In the process of variable costing the fixed manufacturing overhead are not to be…

Q: Define the terms Cost Costing Cost Accounting

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

Q: Contrast the productcosts computed under activitybased costing and conventionalcosting methods

A: ABC Costing: The Activity-Based costing system is a way of assigning a cost to the product and…

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.