All of the following are accurate regarding the treatment of normal or abnormal spoilage by a rm with the exception of:a. Abnormal spoilage is excluded in the standard cost of a manufactured product.b. Normal spoilage is capitalized as part of inventory cost.c. Abnormal spoilage has no nancial statement impact.d. Normal and abnormal spoilage units affect the equivalent units of production

Q: Raw materials inventory should not include indirect materials. True or False True False

A: Raw materials are the material used at any point during the production process. The material could…

Q: A company engages in a number of activities as part of its quality control system: a. Which type of…

A: Introduction:- Quality control Costs are classified into four types as follows:- Prevention costs…

Q: All of the following are accurate regarding the treatment of normal or abnormal spoilage by a firm…

A: Spoilage: Spoilage is the defective item at intermediate or final stage. The spoilage goods cannot…

Q: One of the accepted methods of accounting for by-product is to recognize the value of the by-product…

A: By product is the product that is manufactured with the primary product but later on, it is…

Q: Wrong classification of imported goods may lead to   a. Goods being shipped to wrong address. b.…

A: Solution: Custom duty rates on imports vary from product to product. Therefore it is necessary that…

Q: When is the material quantity unfavorable? A.When the actual quantity used is less than the…

A: Material quantity variance =(AQ-SQ)×SP Where as,  AQ = actual quantity used SQ = standard or…

Q: Which one of the following sets of inventory cost flow assumptions is not susceptible to profit…

A: FIFO and average cost methods are considered as the sets of inventory cost flow assumptions that are…

Q: If the spoiled units are the result of an internal failure, what is the unit cost of goods units?…

A: The computation of the costs for a specific job is done by the process of job costing. It calculates…

Q: A by-product is best described as *   a. A product that s produced from materials that would…

A: By product is the product that is manufactured with the primary product but later on separated from…

Q: “In accounting for spoiled units, we are dealing with cost assignment rather than cost…

A: Explain the reason in accounting for spoiled units are done with cost assignment rather than cost…

Q: on equipment used in making the component and having no other use is the critical factor in the…

A: Make-or-buy decision            This is a management tool used in management accounting for taking…

Q: Classify each of the following items as a cost, expense, loss, or other category, and explain how…

A: Cost of goods sold Cost of goods sold (COGS) refers to the direct costs of producing the goods sold…

Q: As a result of cost distortion, some products will be overcosted while other products will be…

A: Solution: Cost distortions occurs when the overhead costs are not properly allocated,  when the…

Q: 1. Differentiate the treatment of spoilage using the First-in First-Out versus the weighted average…

A: Inventory management refers to the collection of tools, techniques, and strategies for storing,…

Q: Rector Corporation is examining its quality control program. Which of the following statements is/…

A:

Q: Which of the following statement is true under the Standared Costing System a. Standard cost is a…

A: Solution: Standard costing system is the system of cost estimation in the manufacturing process. It…

Q: AASB 102 Inventories specifies that the measurement rule for inventories is: higher of initial cost…

A: The given questions are answered as per AASB 102 Inventories {Australian Accounting Standard Board}

Q: An example of an appraisal cost would be: O Scrap O Process or product design O Product recalls O…

A: Cost of Good Quality is incurred in order to reduce the Cost of Poor Quality, so that overall Cost…

Q: Discuss the fundamental risk and control issues associated with fixed assets that are different from…

A: Fixed Asset: The asset used by company for more than one year is known as fixed asset. Fixed asset…

Q: 6) Explain the difference between an inventoriable (Product) cost and a period cost. What potential…

A: Financial statements are statements which states the business activities performed by the company .…

Q: One disadvantage of activity-based costing is that it cannot be used for external reporting. This is…

A: ABC or Activity based costing is a technique in which various cost divers are used to calculate the…

Q: 2- Which of the following is a product cost as it relates to inventory? a. Selling costs. b.…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Which of the following would be classified as an external failure cost on a quality cost report?

A: External failure cost:   External failure costs refer to the expenses undertaken by the company…

Q: The cost of is not included in the cost of production a. Abnormal loss b. Direct costs c. Normal…

A: Cost of production: Cost of production may be defined as the aggregate of all the costs incurred to…

Q: as they are removed from the joint-processing center, what value will be assigned to by-products…

A: A by-product is a product that is a small outcome of a production process and has minimal sales,…

Q: Fabrick Company's quality cost report is to be based on the following data: Lost sales due to poor…

A: Answer: Appraisal cost is related to the cost to maintain the quality of the products.   Test and…

Q: Abnormal spoilage is properly classified as a. deferred charge b. extraordinary item c. period…

A: Abnormal Spoilage is considered as a period cost. ... Because abnormal losses are not necessary to…

Q: Which of the following statements is not true regarding the use of variable and absorption costing…

A: Answer:   Option d.

Q: External failure costs include all of the following costs except those related to: a. Lost sales and…

A: Internal failure costs are quality costs incurred as a result of product problems recognized before…

Q: During your audit of a certain company, you have determined that they maintain subsidiary accounts…

A: Under costing methods, Finished goods are always valued at lower of Cost or Net realizable value.…

Q: Whether any of the following sentences about abnormal spoiling is true? a. It is considered to be…

A: Spoilage refers to materials or components that have been damaged, which are beyond the capacity of…

Q: uestion: The total cost of spoilage chargeable to Revenue is (recognized as expenses) and the total…

A: Equivalent units concept is used when opening or ending work in progress is not 100% complete but…

Q: The direct costing method is important because: a) allows the calculation of the break-even point…

A: The cost which is incurred directly into the product is called direct costing for example direct…

Q: In considering whether to produce a single product, the associated direct materials and direct labor…

A: Direct material and direct labor both are direct costs and the direct cost is always considered in…

Q: The type of process loss that should not be allowed to affect the cost of good units is called? a.…

A: Process costing is one of the method of cost accounting, which is used in industries where product…

Q: What is cost per equivalent unit for material using weighted average? What is the cost assigned to…

A: In process costing, some units are not completed and consumed a portion of cost only so the…

Q: ABC generally causes the least amount of cost distortion among products because indirect costs are…

A: Activity-based costing (ABC): Activity-based costing refers to the method of costing where the…

Q: Indirect cost is the cost that cannot be directly attributed to the production as these costs are…

A: Cost is the amount incurred in the regular course of the business. It may be direct or indirect.

Q: The quality costs that are incurred to ensure that materials and products meet quality standards are…

A: The quality costs that are incurred to ensure that materials and products meet quality standards are…

Q: Which one of the following is a disadvantage of Mass Production system? a. Higher level of inventory…

A: The production systems are classified into three. They are: Job production Batch production and…