An indirect cost for one cost object can be a direct cost for a different cost object. True False

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: Indirect costs are known as: (a)  Avoidable costs (b)  Overheads (c)  Incremental costs (d)…

A: 1) Indirect costs means costs which are not directly related to cost of production. Indirect costs…

Q: In a special order situation, any fixed cost associated with the order is irrelevant cost. True…

A: This question deals with the concept of relevant costing. In special order situation, generally all…

Q: Programmed costs are also known as O sunk costs O differential costs O standard costs Omanaged costs

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: What is the similarity of fixed costs with variable costs and its differences.

A: similarities and differences of fixed cost and variable cost are discussed in step 2

Q: Give an example of cost which is a part of unavoidable cost.

A: Unavoidable costs are costs which cannot be avoided by discontinuing a product line or which cannot…

Q: Label each of the following statements as either true (“T”) or false (“F”). Relevant costs are also…

A: Relevant costs: These costs can be defined as the costs that can be avoided if we choose over option…

Q: Is there a difference between relevant costs and incremental costs? Explain

A: Relevant cost: Relevant cost is the cost which is relevant in decision making of a project, and…

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: Some costs that possibly could be traced directly to cost objects are nonetheless classified as…

A: Indirect costs are those costs which cannot be traced or is not cost effective to trace the costs…

Q: Unit cost is the same as average cost of a product or service O A. True B. False

A: Unit cost is the cost of making or selling one unit. It includes direct material cost per unit,…

Q: How are costs assigned differently using the average cost method?

A: Inventory valuation is the valuation of inventory at the time of its purchase and sale using…

Q: Costs maybe classified in a different type of behavioural costs such as variable and fixed costs…

A: From the cost behaviour perspective, there are two types of costs. One is fixed costs and other is…

Q: A cost which changes in proportion to changes in volume of activity is called a: *       a. fixed…

A: Costs are the expenses or amounts incurred in the business for manufacturing or selling of products.…

Q: Direct costs minus indirect costs equal total costs Select one: O True False

A: Direct cost  means  Directly  related to production  of output Example  : Direct  material  ,Direct…

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: Standard costs are preset costs for delivering a product or service under normal conditlons. True or…

A: Lets understand the basics. Management prepares the standard cost sheet which contain details about…

Q: A price that can't be quickly or efficiently linked to a cost object is referred to as: Additional…

A: The costs that are easily tracked to the product are known as the traceable costs. Special domestic…

Q: not easily traceable and are allocated to a cost object u not abbreviate or add any extra spacing in…

A: Direct costs refer to those expenses which can be directly related to a product or a service.

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: prime cost are indirect materials ,indirect labor and other indirect expenses * True False

A: Solution- A prime cost is the total direct costs of production, including raw materials and labor.…

Q: Wrong allocation of common costs lead to   A. Inaccurate estimation of cost of products or…

A: Common costs are those costs that are incurred for two or more products simultaneously. Common costs…

Q: Assuming that direct labor is a variable cost, the primary difference between the absorption and…

A: Major difference between absorption and variable costing is fixed cost allocation across all units…

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: Relevant range is the activity that affects the increase or decrease of costs Select one: O True…

A: Lets first understand the meaning of relevant range. Relevant range is a range at which fixed 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: The cost that is used for the benefit of many cost objects and cannot be easily related to any…

A: Answer is as follows

Q: A factor that causes or leads to a change in a cost or activity is a(n) a. slope. b. intercept. c.…

A: (a) Costs are the expenditures that are incurred in the business for manufacturing or selling of…

Q: A cost - based transfer price considers the cost of producing the goods when determining the price.…

A: At the time of determining the prices of the goods, the cost of goods-producing is required to be…

Q: A fixed cost is a cost that never varies. O True False

A: Cost is basically the amount of money that a business organization has to spend in order to make the…

Q: Direct costs are classified by controllability.    True False Can be true, can be false

A: Direct costs are those costs which are directly incurred for purchase or production of goods in the…

Q: Do you agree from the following statements- Explain in details with examples 1.Variable costs are…

A: IntroductionProduction cost may be defined as that type of expenses which occurs during the…

Q: Expenses that are both variable and fixed are referred to as hybrid costs

A: This question explains about the both variable and fixed are referred to as hybrid costs.

Q: A cost that has characteristics of both a varlable cost and a fixed cost is called a Oa,…

A: Reason:- Mixed cost refers to the cost which is a combination or mix of both fixed cost and variable…

Q: 2. Give an example of cost which is a part of unavoidable cost.

A: An unforeseen expense is a short-term investment on which there is a definite budget commitment.…

Q: (i) A cost that can be traced to a cost object is known as A. A fixed cost B. A variable cost C. A…

A: As posted multiple questions we are answering only first question kindly repost the unanswered…

Q: What does it mean that a cost is a direct, product, and variable cost?

A: The cost represents the value incurred by the corporation in making the product ready to sell in the…

Q: Consider the following statements concerning costs.        1. A committed cost cannot vary with the…

A: Committed costs are costs that are committed or fixed to be incurred in future period of time.…

Q: A cost object indicates how costs are related or identified. O FALSE O TRUE

A: Given, A Cost object is a term in cost accounting which is used to assign the cost.

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.