An alternative concept of fairness in cost allocation, absent the cause-and-effect basis, includes: Multiple Choice   Different costs for different purposes.   Ability-to-bear.   Efficiency.   Consistency.

Q: explain why GAAP requires full absorption costing (instead of variable costing) if absorption…

A: Introduction:- i)Absorption costing:- Under the absorption costing, The following costs included in…

Q: Which method separating mixed cost is most accurate? Provide reasons for your answer based  on the…

A: Cost under accounting can be of two types i.e. fixed cost and variable cost. The accosting records…

Q: In activity-based costing, the criteria used in selecting cost drivers which is ideal is a. Benefits…

A: Solution: In activity-based costing, the criteria used in selecting cost drivers which is ideal is…

Q: Explain the difference between absorption costing and variable costing.   Why is absorption costing…

A: Variable costs are the costs that vary with the change in output of the company.

Q: Marginal costing can provide useful information for decision-making. However, there are limitations…

A: There are various limitations of marginal costing few of them are stated below.

Q: Which one below is NOT an advantage of Activity Based Costing (ABC)? Group of answer choices   ABC…

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

Q: Which of the following is NOT true about the cause-and-effect criterion when estimating a cost…

A: The cause and effect analysis is one of the factors for making cost allocation decisions. The cost…

Q: State and explain whether the following statements are valid or not valid: A. Target costing…

A: Target costing is a costing management method where it is the difference between targeted sales…

Q: TRUE OR FALSE When absorption costing is used for external reporting, variable costing can still be…

A: There are various approaches which can be prepared for reporting purpose. Two of which are variable…

Q: Indirect material cost is that which cannot be conveniently identified with and allocated to cost…

A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product.

Q: Explain how far you agree that the Activity-Based-Costing system is a superior model compared to the…

A: Cost accounting is considered as a process that is followed by a business to estimate the total cost…

Q: When standard costs are used in applying the cost-plus approach to product pricing, the standards…

A: False No, the standards should not be based upon normal levels of performance.

Q: In general, what oconditions would lead to greater differences in the amounts allocated to operating…

A: Service departments or cost centers are those departments which provide services to other…

Q: Why does dual cost allocation improve the resulting allocation of service department costs?

A: Dual Cost Allocation segregates total costs into two parts Fixed Costs. Variable Costs. Each…

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: activity -based costing over traditional volume -based allocation method

A: Definition: Activity Based Costing: The costing method which identifies the activities of an…

Q: Differential Costs are the difference in cost between any two alternative choices True False

A: Differential cost is the cost difference when two alternatives are projected. It also the cost…

Q: Absorption costing is more compatible with cost-volume-profit analysis than is variable costing.…

A: Variable costing simply covers the variable costs actually incurred in production, but not any of…

Q: The reason for some costs to be mixed in nature is: Presence of sunk cost in the cost structure.…

A: Mixed Cost:- This cost is a combination of the fixed cost and variable cost. It means that one…

Q: TRUE OR FALSE The general principle in determining the number of cost pools is that a separate cost…

A: Solution: The general principle in determining the number of cost pools is that a separate cost pool…

Q: One cost that is irrelevant in decision making is a sunk cost Group of answer choices True False

A: Sunk costs are those costs that are already incurred and it is irrelevant for the decision-making as…

Q: Why is there often a conflict between the performance evaluation and cost-minimization objectives of…

A: SOLUTION- TRANSFER PRICING   IS THE ACCOUNTING PRACTICE THAT REPRESENTS THE PRICE THAT ONE DIVISION…

Q: Activity-based costing does a better job of allocating

A: Activity-Based costing is a method of allocating overheads to products using activity rates…

Q: An alternative concept of fairness in cost allocation, absent the cause-and-effect basis, includes?

A: A cause and effect allocation basis is the cost allocation method in which the allocation base is…

Q: Explain a hybrid costing system. Identify a product or service operation that might be suited to a…

A: Hybrid Costing:   Hybrid costing is a method of cost accounting in which the elements of job and…

Q: The following statements are correct excerpt? A. Different costs are used for different purposes B.…

A: Cost accounting means where every cost of doing business is recorded in necessary account and cost…

Q: ou agree from the following statements- Explain in details with Variable costs are controllable but…

A: Statement is TRUE but not entirely True. Variable costs are controllable cost while fixed costs are…

Q: Which of the following option is correct regarding difference in activity-based costing when…

A: Simple costing and activity based costing does not yield in similar since the cost drivers will…

Q: In order to evaluate cost information managers must be able to distinguish between relevant costs…

A: Relevant cost refers to the cost which is usually incurred by lower management in an organization…

Q: From the standpoint of cost control, why is the FIFO method superior to the weighted-averagemethod?…

A: FIFO method is First in First out method in which inventory which is purchased first will be sold…

Q: Which of the following costs can be ignored when making a decision? a. Opportunity costs. b.…

A: Sunk cost can be ignored when making a decision. It is irrelevant cost for decision making.  Sunk…

Q: relevant (differential) revenues and relevant (differential) costs

A: Relevant revenues and relevant costs are two terms used in evaluating the acceptance of special…

Q: me major part of the The cost-benefit-trade-off problem involves identifying all the activities and…

A: A cost-benefit analysis compares the predicted or estimated costs and benefits (or opportunities)…

Q: “To ensure unbiased cost allocations, fixed costs should be allocated on the basis of estimated…

A: Cost:   It is the monetary value incurred by a company to produce a product or a service.

Q: Define standard costs and explain how standard cost information is useful formanagement by…

A: Standard costs: These are the costs which a company determines as a standard to attain its…

Q: Explain cost benefit analysis in detail. Describe the evaluation techniques of cost benefits.

A: The company's motive will be to increase the profitability. The profitability of the company can be…