Briefly discuss two methods of reducing the undesirable incentives associated with the use of absorption costing to evaluate the performance of a plant manager.

Q: Who of the following is an activity-based pricing limitation? Each important action accumulates…

A: Activity based pricing is method where cost is allocated basis the cost drivers.  ABC systems…

Q: Comment on the problems that may follow from a decision to increase the overhead absorption rate in…

A: Cost-plus pricing is similar to the romance story genre in that it is often mocked while yet being…

Q: What are two ways of reducing the negative aspects associated with using absorption costing to…

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Q: Why are cost centers considered to be more appropriate than profit centers for production…

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Q: For what decisions is the manager of a cost center not responsible?

A: Responsibility of Cost Centre Manager The main responsibility of the cost center managers to…

Q: A downside to absorption casting is: A. not including fixed manufacturing overhead in the cost of…

A: Absorption costing demonstrates that all the expenses related to manufacturing a product are…

Q: Explain the Role of environmental costing in improving organisational performance

A: Environmental Costing is an important tool for understanding the role played by the Natural…

Q: The target costing is a cost management technique. Discuss the advantages of using this technique…

A: Definition:   Target costing: A costing system that emphasizes on the minimization of existing and…

Q: Which of the following is false about activity-based costing?   Implementing an activity-based…

A: Activity-Based Costing (ABC): Under activity-based costing the different cost is assigned to a…

Q: Explain the Over head cost control  benefits and drawbacks in manufacturing unit.

A: Cost accounting: A branch of accounting that deals with the calculation of the total cost incurred…

Q: Which of the following types of companies would be most likely to benefit from activity-based…

A: activity-based costing -   generally, activity-based costing is used to allocate indirect costs or…

Q: Which of the following must be known about a production process in order to institute a variable…

A: In order to institute a variable costing system, an organisation must aware about the varible and…

Q: Which one of the following is correct about variable costing systems? Select one: a. Normally result…

A: Variable costing is a concept used in the cost accounting system which excludes fixed manufacturing…

Q: when backflush costing is used, managers generally do not use which of the following to keep tract…

A: Backflush costing refers to the method of product costing which is generally used in a Just - In…

Q: Which of the following statements about ABC is not correct? answer choices When forming activity…

A: Answer:-  Activity-based costing (ABC)= Activity-based costing (ABC) is a kind of method of costing…

Q: First: To achieve accurate costing, a high degree of correlation must exist between the cost driver…

A: Introduction:- Activity based costing allocate manufacturing overhead costs to products in a more…

Q: When comparing absorption costing to variable costing, all of the below are disadvantages of…

A: Solution: When comparing absorption costing to variable costing, all of the below are disadvantages…

Q: Activity-based costing tends to pass the cost-benefit test for companies with  A. Operations that…

A: Activity based costing is a type of costing system in which costs are assigned or allocated to all…

Q: What is the difference between variable and absorption costing. How does these variable costing help…

A: Absorption costing is a costing mechanism where all the costs related to the production are assigned…

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 pricing a product or service, managers must consider which of the following? Only period costs…

A: Pricing a product is considered as one of the marketing strategy.

Q: Discuss the disadvantages of Absorption Costing for cost control and performance evaluation.

A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…

Q: A possible disadvantage of the ABC method is: (a) It does not allocate costs to the way production…

A: Definition:   Activity-based method (ABC): The costing method which allocates overheads to the…

Q: Which TWO of the following statements about activity-based costing (ABC) are true? a. Implementation…

A: Activity-based costing suitable when: A variety of products are created Overhead accounts for a…

Q: Of the following systems, which one is most likely to reduce cost distortion to a minimum?…

A: SOLUTION- ACTIVITY BASED COSTING- IT IS METHOD OF ALLOCATING THE COSTS TO THE ACTIVITIES INVOLVING…

Q: Which of the following statements is true with regard to activity-based costing?   Multiple Choice…

A: The overhead is applied to the production using various methods as traditional costing and activity…

Q: Which among the following is not a relevant cost for decision making? a. Cost of producing…

A: Relevant Cost refers to the incremental and avoidable cost of implementing a business decision.…

Q: Marginal costing is usually deployed when decisions about volume are being made. Discuss the…

A: Monetary Accounting has appeared with the advancement of huge scope business   as business entities.…

Q: Discuss how traditional methods of allocating overhead to products may not provide a good measure of…

A: The overhead costs are allocated to production using various methods as traditional costing and…

Q: Which of the following characteristics would be an indicator that a company would benefit from…

A: Activity-based costing: Activity-based costing is the method of costing is used by the company in…

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: Which among the following is not true about traditional costing system? a. This method allocates…

A: Traditional costing is allocating the factory overhead to products based on the volume of the…

Q: Explain the relationship between customer profitability analysis and activity-based costing.

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Q: Critics of absorption costing have increasingly emphasized its potential for leading to undesirable…

A: Absorption Costing: The absorption costing is a method used to allocate the fixed manufacturing…

Q: What is likely the most effective way to reduce a company’s total quality costs?

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Q: Disadvantages of activity-based costing include which of the following? a. It is not acceptable…

A: Answer; d. Both a. and b.

Q: Which of the following statements is not false of costing​ systems?   A. ​Activity-based costing…

A: Introduction: Traditional costing is the more simplest method which typically delivers less accuracy…

Q: Which of the following statements is true with regard to activity-based costing? Multiple Cholce…

A: Activity-based costing is a method of costing that identify activities in an business and assigns…