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

Q: Which of the following costs is NOT RELEVANT?

A: It is pertinent to note that managerial accounting mainly concentrates on decision making  Inorder…

Q: Understand costclassifications used in makingdecisions: differential costs,opportunity costs, and…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

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: Are joint cost allocations useful? If they are, for what purpose?

A: Definition: Joint cost: The total costs incurred prior to the split-off point where the joint…

Q: “The inspection point is the key to the allocation of spoilage costs.” Do you agree? Explain.

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

Q: What is Principle of Unequal Cost and who advocated the principle?

A: The basic principle of unequal cost can be described simply as "buying cheap and selling dear". In…

Q: Why is there a need to separate mixed cost as to variable & fixed cost?

A: Variable cost: these are the costs which vary with the units produced. These costs increase by…

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: Costs that will differ between alternatives and influence the outcome of a decision are

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: What is meant by reporting the "principle of exceptions" as the term used in reference to cost…

A: The principle of exception is a supervision style of managers in which they take corrective action…

Q: Distinguish between discretionary fixed costs and committed fixed costs.

A: Discretionary fixed costs and committed fixed costs: Both costs are considered as fixed costs but…

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: Which of the following aspects of a cost-benefit study would have the greatest uncertainty as to its…

A: Cost - benefit analysis is a decision making process in which costs incurred and revenues earned due…

Q: In a homogeneous cost pool, all costs have a similar cause-and-effect relationship with the cost-…

A: The homogeneous cost pool is a collection of different costs whose changes are based on single base.…

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: "ABC systems may result in misallocation of indirect costs." Do you agree? Give reasons for your…

A: ABC system means Activity Based Costing system in which all indirect costs or overhead costs are…

Q: What are the consequences of broad averaging on costs? Explain?

A: Broad Averaging:Broad averaging is also known as peanut butter cost is a costing approach of…

Q: Why is it necessary to distinguish between variable and fixed costs when dealing with mixed costs

A: Introduction:- Every Business expenses are classified as either fixed or variable costs. on other…

Q: please explain the "principle of exceptions" as it relates to cost control.

A:

Q: What is the definition of cost?

A: In the business, costs are the important measures to determine the value of elements being purchased…

Q: What is the benefit of identifying avoidable and unavoidable cost in decision making process?

A: Avoidable costs: Avoidable Costs, as the name suggests, are the costs that can be avoided of the…

Q: Explain the difference between a controllable and a noncontrollable cost.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: What circumstances might create distortions where estimated costs are not an accurate representation…

A: The estimated costs are the costs determined through the estimation process on past…

Q: Explain why unit costs must often be interpreted with caution?

A: Unit cost: Unit cost refers to the average cost per unit which is computed when the total cost of…

Q: What are the three primary cost flow assumptions? How does the specific identification method differ…

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

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: How is uniform cost search different from plain BFS?

A: UCS : Uniform Cost Search is an uninformed search algorithm. It cannot deal with a heuristic…

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

A: Cost allocation is dividing of all indirect cost between all cost objects based on the resources…

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: Give two examples of sunk costs, and explain why they are irrelevant in decision making.

A:

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

A: First-In-First-Out (FIFO) Method:   It is a method of managing inventory of an organization. Under a…

Q: What is the primary advantage of separately allocating fixed and variable indirect costs?

A: Solution Concept Fixed cost               Fixed cost are those cost which does not change with the…

Q: Briefly explain the importance of distinguishing between relevant and irrelevant costs for the…

A: The costs that are affected by decision are relevant cost and  those costs are not get affected are…

Q: What are relevant and irrelevant cost of direct materials, direct labor and misconception about…

A: Direct materials can be defined as the cost of materials that is used for the production of goods or…

Q: _______________ are the costs associated with not choosing the other alternative Sunk costs

A: Relevant costs: These are  the costs which are  relevant to a decision

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.