Describe the use of practical capacity in a TDABC system.

Q: Why is the form of activity-based costing unacceptable for external financial reports?

A:

Q: Is the following expense deductible:  Data runs a computer servicing company. He purchases office s...

A: All the expenses incurred in connection with the business is deductible expenses.

Q: How can a hotel’s management use cost-volume-profit analysis to help in deciding on room rates?

A: Cost Volume Profit Analysis:   It is an analysis used to determine the manner in which the type of c...

Q: Explain the implementation issues of the cost estimation methods

A: Cost estimation is the process of determining the probable cost of a product before starting the man...

Q: What is responsibility accounting?

A:

Q: What are the purposes of the following documents:(a) material requisition form, (b) labor time recor...

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With th...

Q: Give an example of managerial accounting information that could help a manager make the following de...

A: Managerial accounting information assists the managers in various decisions related to different asp...

Q: How can the retained earnings indicate the number of assets that the company has financed?

A: Retained Earnings: It is the amount which is earned by the company as a profit from business operati...

Q: What is a NIC?

A: NIC:  NIC stands for network interface card. NIC is an electronic device that provides circuit to co...

Q: Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $475,00...

A: Adjusting entry = Sales * Estimated bad debt expenses Adjusting entry = $2,140,000 * 1% *3/4 Adjusti...

Q: Maureen has decided to produce and sell cricket bats in her spare time. She has a shaded area that w...

A: Opportunity cost is the cost of the next best alternative you could have done had you not made your ...

Q: “The principal purpose of the cash budget is to see how much cash the company will have in the bank ...

A: Cash budget:   A cash budget is prepared by the company to estimate the cash position of the company...

Q: The following details relate to materials used by Ohiahyeda manufacturing enterprise to produce its ...

A: Compute the economic order quantity (EOQ) as follows:

Q: The totals from the first payroll of the year are shown below. TotalEarnings   FICAOASDI   FICAHI ...

A: Payroll: Payroll refers to the total amount that is required to be paid by the company to its emplo...

Q: What is a quantity standard? What is a price standard?

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

Q: Why do proponents of absorption costing argue that absorption costing is preferable as the basis for...

A: The absorption costing argue that absorption costing is preferable as the basis for pricing decision...

Q: As the discount rate increases, the present value of a given future cash flow also increases. Do you...

A: Present value, also called "discounted value," is the current worth of a future sum of money or stre...

Q: List and explain four purposes of product costing.

A: Product costing: The process of assigning the production costs to all output of the organization is ...

Q: Adjustment for Uncollectible Accounts Kirchhoff Industries has computed that the proper balance for ...

A: Definition: Bad debt expense: Bad debt expense is an expense account. The amounts of loss incurred f...

Q: Define computer-integrated manufacturing.

A: Conversion Cycle:   A set of all processes that are used to collect inputs and convert them into fi...

Q: The totals from the first payroll of the year are shown below. TotalEarnings   FICAOASDI   FICAHI ...

A:

Q: Explain how prenumbered documents help to provide indirect access control over assets.

A: Definition: Assets: These are the resources owned and controlled by business and used to produce ben...

Q: Elkhorn Company purchased merchandise on account from Springhill Company for $42,000, terms 2/10, n/...

A: Accounts payable are the suppliers from whom a company purchases its raw material or input stock. In...

Q: What is the link that connects the schedule of cost of goods manufactured to the schedule of cost of...

A: Schedule of Cost of goods manufactured:   Cost of goods manufactured can be defined as the total amo...

Q: The state Department of Education owns a computer system, which its employees use for word processin...

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

Q: List the three parts of a control system, and explain how such a system works.

A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The...

Q: Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of ...

A: (b)   The adjusted balance of Accounts Receivables, Allowance for Doubtful Accounts, and Bad debts e...

Q: Distinguish between a traceable fixed cost and a common fixed cost. Give several examples of each.

A: Fixed Expense:   It is the expense incurred by a company that is not related to the volume of output...

Q: What effect, if any, would you expect poor-quality materials to have on direct labor variances?

A: Definition: Direct labor variance mainly arises due to the differences in the actual and budgeted ra...

Q: Describe five factors that managers often consider when determining the significance of a variance.

A: Definition: Variance: Variance refers to the different levels in the actual cost incurred and stand...

Q: Describe an important cost-benefit issue involving accuracy versus timeliness in accounting for over...

A:

Q: Which of the following is the least risky strategy for converting from a manual to a computerized sy...

A: To determine the least risky strategy for converting from legacy system to new system as follows, Th...

Q: How many Work in Process accounts are maintained in a company that uses process costing?

A: Process Costing:   Process costing is a method of costing where the production is continuous and und...

Q: Explain why maintaining their medical-services provider network is treated as a product-sustaining-l...

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

Q: Find the payment necessary to amortize a 7% loan of $2200 compounded quarterly, with 6 quarterly pay...

A: Quarterly Payment needed to amortize this loan : $  -389.45 Reference:

Q: Why aren’t common fixed costs allocated to segments under the contribution approach?

A: Contribution approach income statement segregates variable and fixed costs. In this approach contrib...

Q: Accounting Question

A: Preliminary analytical review is used for finding out risks and potential high risk areas for planni...

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.