Explain why the majority of businesses use full-costing systems whilst most management accounting theorists favour marginal costing. fully explain all items in BOLD giving practical illustrations.

Q: Which one of the following statement is not correct? Group of answer choices -Opportunity costs are…

A: Managerial accounting is helpful in decision-making related to a product whether the product should…

Q: Which of the following underlying assumptions form(s) the basis for cost-volume-profit analysis?…

A: Under CVP analysis, the effect of variable cost and fixed cost on profitability is to be determined.…

Q: 1. "Cost accounting is a form of managerial accounting that aims to capture a company's total cost…

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

Q: The following is a list of terms related to managerial accounting practices. 1.   Activity-based…

A: Definition: Managerial accounting: Managerial accounting is a system, or a process of collecting and…

Q: O The industry in which business is operoting O Obtoining the complete knowledge of the production…

A: A cost accounting system refers to the set of guidelines formulated in order to help the company to…

Q: Sunk costs are ignored in decision making but information about sunk costs are usually found in the…

A: Sunk Cost refers to the expenditure incurred by the organization where there is no scope to recover.…

Q: What benefits and drawbacks are there for a business that uses a Standard/Traditional Costing model?

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

Q: THE MAIN DIFFERENCE BETWEEN EX-ANTE AND EX-POST ECONOMIC PROFIT a. Representing the opportunity…

A: b. is called the hold-up problem

Q: Explain and describe the various costing methods used in management accounting

A: There can be several types of costing methods that are used in Managment accounting that help and…

Q: What benefits and drawbacks are there for a business that uses a Standard/Traditional Costing model?

A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…

Q: activities performed by another firm or individual

A: Option "b" is wrong because responsibility centers are units within the firm, not another firm or…

Q: Successful adoptions of activity based costing typically occur when companies rely heavily on:…

A: Activity based costing: It can be defined as a method of costing that determines the total…

Q: I'm having trouble determining the profitability of the firm's information systems services and…

A: Activity based costing is a method and type of costing, in which all indirect costs and indirect…

Q: Understanding the relationships in the expanded contribution margin model may be the singlemost…

A: Step 1   Cost Profit volume analysis is the basic evaluation and seeing the impact of the cost and…

Q: a) Use activity-based costing to estimate the cost of preparing: i A wage and salary tax return. ii…

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

Q: 2) Many firms have decided to use marginal costing to prepare the income statement. Please briefly…

A: Marginal Costing is a costing technique wherein the marginal cost, i.e. variable cost is charged to…

Q: Marginal Costing is a key tool used by Managements for Cost-Volume- Profit analysis enabling…

A: Absorption costing is the method of managerial accounting for capturing all the costs linked with…

Q: Activity-based costing tends to pass the cost-benefit test for companies with  A. Operations that…

A: Activity based costing is a type of costing system in which costs are assigned or allocated to all…

Q: Cost calculation

A: Cost is the amount incurred in production of product, carrying out a process, conduct of sales or…

Q: Requirements for Question 2   Use your knowledge of management accounting and marginal costing to…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: Imagine that you own your own business, or you are the manager of a company. Please tell us about…

A: As a manager of the company ,, our company is running in the business of   quick service restaurant…

Q: Explain the concept of a contribution margin and describe how it differs from gross margin. Also,…

A: Contribution Margin represents the incremental money generated for each product/unit sold after…

Q: What is meant by a product’s contribution margin ratio? How is this ratio useful in planning…

A: Contribution margin is the sales revenue of the business after deduction of variable costs from…

Q: Which of the following is one of the difference between management accounting and cost accounting…

A: Management accounting and cost accounting are two branches of accounting. Under management…

Q: Why would a business that uses traditional costing systems consider implementing activity-based…

A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…

Q: A business that is just starting out and is uncertain about what the sales levels will be would…

A: Fixed cost is the cost that does not change with the change in the output. Whereas, variable cost…

Q: Winters, Inc. is preparing financial statements to be distributed to investors and creditors. The…

A: Definition:   Absorption costing: It refers to the method of product costing in which the price of…

Q: "Simplification of all costs into only fixed and variable costs distorts the actual cost behavior…

A: Introduction:- There are four basic cost behavior patterns as follows:- fixed costs variable costs…

Q: In Classification Of Cost (Marginal costs) What Is A Business Situational Example of the ff:…

A: Cost is the amount which is spend to sold the goods or to provide the service. It is comprises of…

Q: a cost that is irrelevant when making managerial decision O fixed cost O opportunity cost O…

A: Cost means the amount spent on doing some business or activity.

Q: In making short-term business decisions, what should you do? Use a traditional costing approach.…

A: Business decision refers to large part of conducting business is making decisions.

Q: Explain why some management accountants believe that absorption costing may provide an incentive for…

A: Absorption costing Absorption costing is an accounting method which helps in computing the total…

Q: Describe the differences in behavior of fixed costs, variable costs, semi-variable costs and step…

A: Fixed costs are fixed in nature, it doesn't vary with the change in units. The total fixed cost will…

Q: What from the upcoming options will be made when using the traditional costing method, relatively to…

A: Traditional Costing Method: The traditional costing methodology, which is focused on assigning…