Define historical costs.

Q: What are transferred in costs? When do they occur?

A: Transferred in costs: Cost that is assigned to partially completed products that have been finished…

Q: Define initial direct costs.

A: Initial direct cost: A cost that is incurred during the process of initiating the agreement of lease…

Q: Define the following terms: (a) cost behavior and (b) relevant range.

A: Cost behavior and relevant range are terms under cost accounting. Cost behavior studies the pattern…

Q: the amount of relevant costs that would be saved

A: Relevant costs mean the variable costs that affect the decision making.

Q: What is meant by relevant costs and there use in making short-term decisions?

A: Cost refers to the amount of expenditure incurred by an individual or an entity in relation to goods…

Q: Define restructuing costs.

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Explain the difference between direct costs and indirect cost

A: Direct cost is the cost incurred by the organization while performing their center business process…

Q: costs and are allocated based on

A: Fixed costs allocated = 25% * Total costs 25% * $48000 = $12000

Q: Distinguish between prime costs and conversion costs.

A: Definition of Prime Cost:Prime cost is refer as the cost incurred for manufacturing of goods. It is…

Q: Define the term contribution margin.

A: Contribution margin is defined as the term which determines the profitability of the individual…

Q: Explain any one pros and cons of historical cost.

A: Historical cost is one of the four basic accounting principles. This method is used under Generally…

Q: Define relevant cost.

A: Relevant cost is a cost which can be changed with change in selection of a alternative decision.…

Q: Explain the difference between period costs and product costs.

A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other…

Q: Describe why base measurement on historical costs?

A: Definition: Historical cost: Historical cost explains that assets and liabilities appear in the…

Q: Define the term Current cost.

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

Q: Explain in detail and give example Historical Cost Principle

A: The historical cost theorem (as well called the expense theory of accounting) notes that a company's…

Q: Discuss relevant cost.

A: Relevant cost term is used in making decision whether to buy or not.Whether to produce a goods or…

Q: Define conversion costs?

A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other…

Q: Why base measurement on historical costs?

A: Historical cost:   Historical cost explains that assets and liabilities appear in the financial…

Q: Define Cost recovery method

A: Cost recovery is a method in accounting wherein a business only records the revenue it earns from a…

Q: what is inventoriable costs?

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

Q: Distinguish between inventoriable costs and period costs.

A: Characterizations of expenses. Inventoriable expenses is characterised as prices that become a part…

Q: Explain the major reasons for allocating costs.

A: The entity allocates its cost by using a different measure. The cost that is allocated is common and…

Q: Define direct costs and indirect costs?

A: Direct cost: Direct cost is the cost assigned to the cost object which is directly related to that…

Q: Define prime costs?

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

Q: Define the term Sponsor's Costs?

A: Sponsorship cost refers to the cost of supporting an event or economic activity for an agent in…

Q: Define the terms sunk cost and differential cost.

A: Differential cost:  Differential cost is the change in total cost due to increase or decrease in…

Q: Explain Historical Cost Principle in detail with example.

A: In bookkeeping, we may utilize four adequate estimation bases. These are the historical expense or…

Q: What are the prime costs? Conversion costs?

A: Prime cost: Prime cost includes cost which are related to direcly production of Finished goods. This…

Q: What are “initial direct costs” and how are they accountedfor?

A:

Q: Define sunk cost

A: Companies when making crucial decisions about their operations consider relevant costs i.e. costs…

Q: Define Historical cost principle.

A:

Q: Define conversion costs with an example?

A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other…

Q: What is recalculated cost?

A: Cost: It implies to the amount that is paid or spent on a specified task or activity. It indicates…

Q: Define cost pool?

A: Step 1 The amount of money expended on producing a particular product is referred to as cost. Direct…

Q: Explain the difference between a direct cost and an indirect cost.

A: Direct Cost: A direct cost is a cost that can directly be associated with a particular department or…

Q: Describe the concepts of contribution margin, relevant range, and relevant costs

A: Solution:- Analysis the concepts of contribution margin, relevant range, and relevant costs as…

Q: Define relevant costs. Why are historical costs irrelevant?

A: Relevant cost: A cost that is specific in the managerial decision making are called relevant cost.…

Q: Define the term conversion cost.

A: Conversion cost:  The cost of changing the materials into a finished product. It comprises direct…

Q: Explain an example of value added cost.

A: value-added costs: A value-added costs  add to the desirability of the product or services in the…

Q: Define inventoriable costs.

A: Inventoriable Costs are also known as Product Costs. Inventoriable cost is the cost of manufacture…

Q: Define Replacement cost.

A: Replacement cost is defined as the measure of cash required to change the current resource with a…