Describe ABC Required: a. What is activity-based costing and how does it differ from traditional absorption costing? b. Describe the advantages and disadvantages of activity-based costing systems.

Q: Discuss the advantages of activity-based costing.

A: Activity Based Costing:   The approach of activity based costing keeps the record of resources…

Q: What type of cost drivers do modern costing systems use and how does it differ from the cost drivers…

A: Cost Driver Business activities are  influenced by a cost driver . Cost drivers are the factors…

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: “The standard –costing method is particularly applicable to process-costing situations.”Do you…

A: Yes, the standard-cost procedures are particularly suitable for costing systems where there are…

Q: How does standard costing improves the control function? Comment with examples.

A: A standard costing framework is an accounting instrument utilized for assessing required creation…

Q: Which of the following represent the right process order for cost allocation: Select one: O a.…

A: Cost Allocation is the process of identifying and assigning costs to the various cost objects. These…

Q: Explain in simple terms the notion of equivalent units of production (EUP). Why is it necessary to…

A: Process costing: It is a type of costing method, where the direct costs are accumulated and indirect…

Q: TRUE OR FALSE Activity-based costing method is also known as transaction-based costing.

A: Solution: True. Activity-based costing method is also known as transaction-based costing.

Q: Explain the similarities between ABC and traditional costing .

A: Traditional Costing is the method of allocation of cost based on a single cost driver; whereas under…

Q: How is the distinction between direct and indirect costs handled differently under volume-based…

A: Activity-based costing: It is a method that helps in finding the activities performed by a company…

Q: Discuss the disadvantages of activity-based costing.

A: Activity Based Costing: The approach of activity based costing keeps the record of resources usage…

Q: Differentiate between the adoption of “Variable costing” and “absorption costing” in business.

A: Variable costing and absorption costing are the two different costing systems used by the business.…

Q: By use of relevant examples, differentiate between the following: a. Relevant costs and Non-relevant…

A: In general words, cost means money that is spent to gain something. In accounting terms, the cost is…

Q: Comparison between ABC and Traditional costing

A: Traditional costing is also written as volume based costing. Under this method, overheads are…

Q: What can ABC costing information be used for? When is it a better option? How are cause and effect…

A: A method of costing that assigns overhead and indirect costs to related products and services is…

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: how we can improve control function using standard costing

A: The technique of costing which is used for comparing the actual and standard costs and revenues to…

Q: Describe ABC Required: a What is activity-based costing and how does it differ from traditional…

A: SOLUTION- Activity-based costing and traditional absorption costing are the two different approaches…

Q: Under activity-based costing, second stage allocation would involve: O a. Defining activity measures…

A: Steps involved in Activity-based costing - Step 1 - identify and classify the activities involved…

Q: What are the three major ways in which activity-based costing improves the accuracy ofproduct costs?

A: Activity based costing is a system in which costs are allocated to the products on the basis of…

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

A: Costing - Absorption costing is the costing also known as Full Costing. Cost Behavior - Cost…

Q: TRUE OR FALSE The last step in activity-based costing system is the selection of cost driver

A: Cost driver is used to compute the overhead rate per cost driver.

Q: Which of the following statement about Activity Based Costing is true? a)  Costs which change with…

A: In the activity level costing the indirect cost is allocated on the basis of their activity. for…

Q: Absorption Costing approach

A: Absorption costing refers to method of accounting in which the cost of manufacturing are absorbed by…

Q: Under activity-based costing, second stage allocation would involve: a. Calculating activity rates O…

A: ABC costing: Here the costs of products are to be allocated by the activities using cost pools. It…

Q: Which of the following statements is true? *   A. The traditional approach to costing uses many…

A: Cost accounting is one of the branches of accounting. Under this, all costs related to the product…

Q: In what fundamental ways does activity-based costing differ from traditional costing methods?

A: Costing is a process through which total expenditure incurred in the production or manufacturing of…

Q: What are the key reasons for product cost differences between simple costing systems and ABC…

A: Simple costing method is a traditional costing method under which indirect costs are assigned to…

Q: Explain the difference between  - Absorption and Marginal Costing

A: The Question has covered the concept of Absorption and Marginal Costing. Absorption Costing The…

Q: The following statements are correct excerpt? A. Different costs are used for different purposes B.…

A: Cost accounting means where every cost of doing business is recorded in necessary account and cost…

Q: :Under activity-based costing, the process of assigning costs to cost objects is called First stage…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: (a) Explain the difference between the throughput and absorption costing methods.

A: "Since you have asked multiple questions, we will solve only first question for you. If you want any…

Q: What is absorption costing and marginal costing in the context of overhead costs? Discuss the…

A: The difference between Absorption Costing and Marginal Costing is discussed hereunder :

Q: Discuss the basic difference between absorption costing and variable costing from a product-costing…

A: It is a technique of costing wherein: All variable manufacturing costs ( like direct material,…

Q: key different in accounting for costs between absorption and variable costing

A: Absorption costing and variable costing are two methods of costing products.

Q: :Under activity-based costing, the process of assigning costs to cost objects is called First stage…

A: Activity-Based Costing:- It is a method of assigning overhead and indirect costs such as salaries…

Q: Under activity-based costing, second stage allocation would involve: O a. Defining activity measures…

A: Activity-based costing is a method of costing system which focuses on activities. In this method of…

Q: Use of activity-based costing will result in the development of

A: Activity-based costing (ABC):   Activity based costing (ABC) framework was created to manage the…

Q: Identify one characteristic in organisation that make then more suited to using ABC method as…

A: Activity based costing and traditional costing methods both are the cost allocation method to the…

Q: Identify the advantages and disadvantages of using Activity-Based Costing.

A: Identify the Advantages and Disadvantages of Activity Based Costing?

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.