Define the following concepts:a) Absorption costing-b) Cost behavour-NB: Prefebly in Accounting

Absorption (full) costing is a costing technique in which all the manufacturing costs including…

Answered: Define the following concepts: a)…

Business

Accounting

Define the following concepts: a) Absorption costing- b) Cost behavour-

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 15MC: Absorption costing is also referred to as: A. direct costing B. marginal costing C. full costing D....

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Define the following concepts:

a) Absorption costing-

b) Cost behavour-

NB: Prefebly in Accounting

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Accumulating costs means that a. costs must be summed and entered on the income statement. b. each cost must be linked to some cost object. c. costs must be measured and tracked. d. costs must be allocated to units of production. e. costs have expired and must be transferred from the balance sheet to the income statement.
Can a company gather information for both variable and absorption costing systems?
Using the costs listed in the previous problem, classify the costs as either product costs or period costs.
Under absorption costing, a unit of product includes which costs? A. direct material, direct labor, and manufacturing overhead B. direct material, direct labor, and variable manufacturing overhead C. direct material, direct labor, and fixed manufacturing overhead D. direct material, direct labor, and all variable manufacturing overhead
For which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard cost
When might activity-based costing be preferred over using a relative amount of product sales in allocating selling and administrative expenses to products?
Which is not a step In activity-based costing? A. identify the activities performed by the organization B. identify the cost driver(s) associated with each activity C. compute a cost rate per production D. assign costs to products by multiplying the cost driver rate by the volume of the cost driver units consumed by the product
The ability to assign a cost directly to a cost object by means of a causal relationship is a. allocation b. traceability c. separability d. value chain process
Which is not a task typically associated with ABC systems? A. calculating the overhead application rate for each cost pool B. applying a single cost rate C. identifying a cost driver D. more correctly allocating overhead costs
What are the two main things that an activity-based costing system attempts to accomplish relative to direct and indirect costs?
Absorption costing is also referred to as: A. direct costing B. marginal costing C. full costing D. variable costing
When is an activity-based costing system better than a traditional allocation system?