Describe four purposes of cost allocation.

Q: Discuss four frequently encountered problems when collecting cost data on variables included in a…

A: Cost Function:Cost function represents the basic change comes in the total cost due to the change in…

Q: Describe three different versions of backflush costing.

A:

Q: Describe three different purposes for computing product costs?

A: Product cost is the cost incurred to manufacture a product, it includes the material cost, labor…

Q: When assigning indirect costs to a cost object, an ideal cost-allocation base measures ________. A)…

A: A measure of input or output that defines the amount of cost to be allocated to a specific cost…

Q: Discuss four example each of relevant cost and irrelevant cost.

A: Relevant cost are those cost which are pertinent to a decision. It is helpful in decision making.…

Q: Define cost object and give three examples?

A: A cost object can be defined as something to which the management feels the need to seperately…

Q: Explain the distinctions between implicit and explicit costs in four points.

A: The costs in the business are classified as implicit costs and explicit costs.

Q: Both the equivalent units schedules and the physical flow are prerequisites to calculating the…

A: The question is related to Process Costing. There are two methods of equivalent units  1. FIFO  2.…

Q: List and briefly describe the four broad categories of activities identified in stage one of an…

A: Activity based costing system is method of costing in which indirect costs are assigned to the…

Q: Define cost tracing? Give three examples?

A: Cost tracking: Cost tracking means the historical record of all the information of cost as it is…

Q: Prepare a complete service cost allocation report with details using the following method:…

A: total overhead of admin dept= p150000 + 20% overhead of IT dept…

Q: List and briefly describe the purpose of each of the four process-costing steps.

A: The purpose of each of the four process-costing steps is given below as,

Q: List any four functions of management. Explain what type of cost management information is…

A:

Q: What is costing system refinement? Describe three guidelines for refinement.

A: Broad averaging is also known as peanut butter cost is a costing approach of distributing the…

Q: Describe four levels of a cost hierarchy.

A: Cost Hierarchy: Cost hierarchy is a used to classify the cost pool on different basis to determine…

Q: explain the cost management information system's two major subsystems

A: The cost management information system's primary goal is to generate outputs for internal users. To…

Q: ost classifications used for assigning costs to cost objects include: Multiple Choice Variable cost…

A: Cost Classification Determining the cost in the organisation is one of the important part in the…

Q: The three major cost components of a manufactured product are:

A: Answer is B For a manufacturing type firm, the three main cost components included in the product…

Q: Briefly explain how to use the physical-units method of joint cost allocation.

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: Describe three alternative linear cost functions.

A: Cost Function: Cost function represents the basic change comes in the total cost due to the change…

Q: Describe four methods by which transfer prices may be set.

A: Transfer pricing is the method used to determine the price of goods or services when they are being…

Q: Name three factors that will affect the classication of a cost as direct or indirect.

A: Cost: Cost refers to the expense incurred by the business to earn revenue from sales. In other…

Q: Define the term cost per service.

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

Q: The three major categories of agency costs are

A: Agency cost is considered as an internal cost, that arises from the actions of an agent who works on…

Q: Describe three different purposes for computing products costs

A: Product Cost - Product Cost is the cost incurred by the organization for the product of the entity.…

Q: Give four differences between implicit cost and explicit cost?

A: Explicit cost: Explicit cost refers that, a direct payment made by firm to others in course of…

Q: Identify and discuss the four kinds of quality costs.

A: Remediating item gives identified with quality. Quality expenses don't include basically overhauling…

Q: Discuss five areas where the concept of cost behavior is applied

A: Management's endeavor to understand how operating expenses change in response to a change in an…

Q: Give three examples of industries that use process-costing systems.

A:

Q: List four reasons for using standard costs.

A: Standard Cost: Standard cost is the benchmark amount of per unit product, per unit input or per unit…

Q: What are the two stages of allocation in activity-based costing?

A: Activity-based costing is one of the methods of allocating overhead costs. This method focuses on…

Q: Describe three guidelines for costing system refinement.?

A: Definition:   Cost system refinement: Cost system refinement associates the overhead cost of…

Q: Which of the following way of cost assignment used to assign accumulated cost with an indirect…

A: Lets understand the basics. Indirect cost are cost which are not directly related to production…

Q: Name four approaches to estimating a cost function.

A: Cost Function:Cost function represents the basic change comes in the total cost due to the change in…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.