Cost Object: Deli Department Direct Cost Object: A particular customer Indirect Direct Indirect AT No Yes No Yes B) Yes No No Yes C) Yes No Yes No D) No Yes Yes No Multiple Choice Choice A Choice B Choice C Choice D O O
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A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
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A: CVP refers to cost volume profit analysis. It is calculated to find out the break-even
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A: The costs in the production process can be classified on a different basis, for financial reporting…
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A: Solution: In activity-based costing, the criteria used in selecting cost drivers which is ideal is…
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A: The cost function is a function that is used to show how production expense will change at different…
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A: Relevant Costing is a managerial decision that decides upon how unnecessary costs can be avoided and…
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A: Absorption Costing:-It refers to the method of costing to account for all the costs of…
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A: Fixed cost can also be product cost like fixed manufacturing overhead. Product cost is the main…
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A: the correct option is (a) Activity based costing can be used in service companies
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A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Requirement 3. How is the activity-hierarchy helpful to Ellipse Lid in managing ils busihess? The…
A: Activity hierarchy is also known as cost hierarchy. It is a classification used to allocate the cost…
Q: 1. Indirect costs can be allocated to a cost centre if they: A. Can be identified wholly with the…
A: • Indirect Cost are such cost which cannot be directly traced to individual products. Example:…
Q: An important feature of a cost center is that a. It uses only monetary information b. It must be an…
A: Solution: The important function of a cost center is to track costs. The manager of a cost center is…
Q: Which costs assignment method would you use to assign prime costs to a product: a.direct tracing…
A: Prime cost: prime cost is total of direct cost that is direct material, direct labor and direct…
Q: Cost assignment and cost accumulation
A: Cost assignment is a process used in cost accounting system to allocate costs among products,…
Q: Current Attempt in Progress The underlying principle that absorption costing satisfies is the O…
A: Absorption Costing is a management accounting method for accumulating all costs associated with…
Q: In target costing, prices determine costs rather than vice versa." Explain. Question content…
A: Target costing involves the calculation of an allowable product cost to earn a predetermined amount…
Q: TRUE OR FALSE ABC's objective is to trace costs to products or services as directly as possible.
A: Activity-based costing. This is an overhead allocation method in which overhead and Indirect costs…
Q: Allocate the common cost to Factory, Sales, and Administrative with a solution
A: given total costs factory sales administrative utilities 25000 60% 10% 30% taxes…
Q: Which of the following is subjective approach in costing? a. All of these b. Traditional costing c.…
A: The question is based on the concept of Cost Accounting.
Q: a. Absorption costing system only. b. None of the given answers C. Absorption costing and Variable…
A: Manufacturing companies, incurred costs which could be divided into fixed and variable costs. The…
Q: ost, sunk costs or opportunity costs. Keep in mind that one cost can be fall into different…
A: 1) Predicting cost behavior cost classifications Every company incurred the costs in order to…
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A: If we taken decision on the basis of produce internally or buy from outside. Irrelevant cost are :…
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: Under assimilation costing, benefit is learned
A: Under assimilation costing, benefit is learned based on distinction among deals and absolute expense…
Q: Appendix 12A) Which of the following items are included in the cost base under the absorption…
A: Under absorption costing, the cost of goods include fixed and variable production cost.
Q: Fixed overhead costs that will continue regardless of a make-or-buy decision are ________ to the…
A: It is pertinent to note that fixed cost is the cost irrespective of the level of activity. Example…
Q: Please classify the following cost: advertising expenses, by choosing one of the options below. O…
A: Advertising expense is a revenue expense incurred on the selling and distribution of goods and…
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A: Here Flynn Design Limited produced Bespoke Timber furniture for the hospitality industry. Due to…
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Q: Briefly describe the treatment of Joint Costs when making a sell-or-process-further decision.
A: Dear student, as per Bartleby answering guidelines we can not answer more than one question if…
Q: LO 6.2ldentify appropriate cost drivers for these cost pools: A. setup cost pools B. assembly cost…
A: Cost Drivers: The direct cause of a cost is referred to as a cost driver. Fixed costs do not change,…
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A: Solution: Target costing is reversal of Cost plus model. This is because under target costing cost…
Q: XYZ Inc, is a BPO company that carters to different services; call center, finance, and information…
A: The following cost drivers are listed for XYZ Incorporation:
Q: The costs of direct materials are classified as: Conversion cost Manufacturing cost Prime cost A)…
A: Manufacturing cost and Prime cost is included in the cost of direct materials but it does not…
Q: a) Briefly describe the treatment of Joint Costs when making a sell-or-process-further decision.
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Dual allocation is a cost allocation approach that separates direct and indirect costs, tracing the…
A: Dual allocation method: It involves two type of cost pools, fixed cost and variable cost.
Q: a) Calculate the product cost using a Traditional and ABC approach. b) Discuss and analyse…
A: Cost per unit under Traditional costing system: Particulars Product A Product B Product C Product…
Q: MULTIPLE CHOICE 1. Indirect material cost is a Conversion cost Prime cost No a. No b. No Yes Yes C.…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Which decision will involve no incremental revenues?
A: Answer: Make or buy decision.
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- Assume you are the department B manager for Marleys Manufacturing. Marleys operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only o department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation. (Hint: It may be helpful to perform a vertical analysis.)Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation.Olson Corporation, a retailer and wholesaler of national brand-name household lighting fixtures, purchases its inventories from various suppliers.Instructions(a) (1) What criteria should be used to determine which of Olson’s costs are inventoriable?(2) Are Olson’s administrative costs inventoriable? Defend your answer.(b) (1) Olson uses the lower-of-cost-or-market rule for its wholesale inventories. What are the theoretical arguments for that rule?(2) The replacement cost of the inventories is below the net realizable value less a normal profit margin, which, in turn, is below the original cost. What amount should be used to value the inventories? Why?(c) Olson calculates the estimated cost of its ending inventories held for sale at retail using the conventional retail inventory method. How would Olson treat the beginning inventories and net markdowns in calculating the cost ratio used to determine its ending inventories? Why?
- ) Olson Corporation, a retailer and wholesaler of national brand-name household lighting fixtures, purchases its inventories from various suppliers. Instructions a. 1. What criteria should be used to determine which of Olson’s costs are inventoriable? 2. Are Olson’s administrative costs inventoriable? Defend your answer. b. 1. Olson uses LIFO and the lower-of-cost-or-market rule for its wholesale inventories. What are the theoretical arguments for that rule? 2. The replacement cost of the inventories is below the net realizable value less a normal profit margin, which, in turn, is below the original cost. What amount should be used to value the inventories? Why? c. Assume instead that Olson calculates the estimated cost of its ending inventories held for sale at retail using the conventional retail inventory method. How would Olson treat the beginning inventories and net markdowns in calculating the cost ratio used to determine its ending inventories? Why?Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation. Marley's ManufacturingIncome StatementMonth Ending August 31, 2018Redwood Company sells craft kits and supplies to retail outlets and through its catalog. Some of the items are manufactured by Redwood, while others are purchased for resale. For the products it manufactures, the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, Redwood incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure.After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows: Cost Category Amount Cost Driver Sales commissions $ 829,500 Boxes of yarn sold to retail stores Catalogs 313,000…
- Redwood Company sells craft kits and supplies to retail outlets and through its catalog. Some of the items are manufactured by Redwood, while others are purchased for resale. For the products it manufactures, the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, Redwood incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure.After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows: Cost Category Amount Cost Driver Sales commissions $ 829,500 Boxes of yarn sold to retail stores Catalogs 313,000…Higado Confectionery Corporation has a number of store locations throughout North America. In income statements segmented by store, which of the following would be considered a common fixed cost with respect to the stores? Multiple Choice cost of goods sold at each store store manager salaries store building depreciation expense the cost of corporate advertising aired during the Super BowlRedwood Company sells craft kits and supplies to retail outlets and through its catalog. Some of the items are manufactured by Redwood, while others are purchased for resale. For the products it manufactures,the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, Redwood incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure. Required:1. Prepare a schedule showing Redwood Company’s total selling cost for each order size and the perskein selling cost within each order size.2. Explain how the analysis of the selling costs for skeins of knitting yarn is likely to impact future pricing and product decisions at Redwood Company.
- Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation. The cost that needs further investigation is cost allocated from corporate. In Department A the percentage of cost allocated based on sales is 10% where as in Department B this is 29.41% based on sales. This needs further investigation beacuse of this cost there is operating loss in Department B. Marley's Manufacturing Income Statement Month ending August 31, 2018 Dept. A % Dept. B % Sales…Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation. The cost that needs further investigation is cost allocated from corporate. In Department A the percentage of cost allocated based on sales is 10% where as in Department B this is 29.41% based on sales. This needs further investigation beacuse of this cost there is operating loss in Department B. Income Statement Month ending August 31, 2019 Dept. A % Dept. B % Sales $22,000 100 $51,000 100 Cost of Goods Sold 10,560 48 26,520 52 Gross profit $11,440 52 $24,480 48 Utility expenses 1,000 4.55…Discuss how, as warehouse manager for Vinnies Vinyls, you view the different rate of allocated costs the warehouse is being charged compared to the West store. Describe the implications of this. What steps could you take to solve this discrepancy? What alternatives would you consider, assuming management is willing to consider making changes in the rate?