How is a departmental contribution to overhead an effective tool in assessing each department's performance?

Q: How can budgeting assist a company in planning its workforce staffing levels?

A: Budget: Budget is an effective tool to achieve the financial and operational goals of the business.…

Q: managers duty to take appropriate action when accounting reports indicate

A: Managers are involved in planning and implementing appropriate actions to lead the organization…

Q: a manager wants to assess the costs incurred in a department in the production department. then the…

A: all the product costs will be incurred in the production department.  - product costs like  Direct…

Q: Why are cost centers considered to be more appropriate than profit centers for production…

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Q: Which of the following best describes the activities of the production function?a. maintenance,…

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Q: Is it true that when departmentalized rates is used to allocate overhead costs, all departments…

A: Departmental overhead rates area unit employed by several makers rather than employing a single,…

Q: How does the use of a time-driven activity-based costing (TDABC) system facilitate the preparationof…

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Q: Why are top management support and cross-functional involvement crucial when attempting to implement…

A: Activity based costing system is a form of costing system in which cost is analysed by dividing the…

Q: What is the impact of responsibility reporting and budgeting on an organization?

A: A manager's performance is evaluated based on matters that are directly under the control of that…

Q: What are support departments, and why are their costs allocated to other departments?  What process…

A: generally supporting departments are the departments that provide services to main departments. so…

Q: What are the performance metrics used to monitor employee performance?

A: Companies success depends upon the performance of its employees.Thus it becomes necessary to monitor…

Q: ers choose  between applying predetermined overhead rates or actual overhead rates.

A: Predetermined overhead rates refer to the rate which is used to apply  manufacturing overhead to…

Q: What are the limitations of joint product and departmental cost allocation?

A: The limitations of joint product and departmental cost allocation.

Q: Organization Structure refers to a. Making necessary arrangements for procuring required manpower…

A: Organization structure means the layer of organization where every duties and responsibility of each…

Q: When evaluating the performance of a manager, why shouldfixed costs be divided into the categories…

A: Controllable expenditure: Controllable expenditure is an expenditure that is directly controllable…

Q: In a process costing system, which account shows the overhead assigned to the department?

A: Process Costing: Process costing is a method of cost accounting in which all the costs that are…

Q: How are standards used by management in evaluating organizational units, as to their budgetary…

A: A budget refers to the financial plan that is used by managers in order to estimate revenues and…

Q: Corporate Law Department cost after allocations is closest to:

A: Service department (Personnal) Service department (IT) Operating department (Family law) Operating…

Q: Discuss how the budgeting process in an organisation benefits a functioning standard costing system

A: The process of creating a budget is referred to as budgeting. This process involves budget planning…

Q: Distinguish between departmental gross profit, departmental operating income and departmental direct…

A: Departmental Accounting: This accounting is used for maintaining the accounts of various branches or…

Q: Required: 1. Determine the departmental contribution to overhead and the departmental net income for…

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Q: Explain the difference between the engineered-cost and discretionary-cost approaches to…

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

Q: Why is the use of departmental overhead allocation rates considered a refinement over the use of a…

A: Departmental overhead allocation rate: Departmental overhead allocation rates are rates that are…

Q: be applied when the step method of allocating service department costs is used?     The sequence…

A: step method allocation of department costs, allocate some of the service department costs to other…

Q: how to solve plantwide overhead rate versus departmental rates, effects on pricing decisions?

A: Since there are multiple sub parts in the question, calculation will be given for first three sub…

Q: Describe the difference between direct and step-down methods to allocate service department costs to…

A: Service departments are those department which provides services to other departments like other…

Q: Which of the following terms is commonly used to describe the departments within a company that…

A: Product cost: It refers to the costs that are incurred to manufacture a product involving the direct…

Q: When and how to calculate the predetermined overhead rate?

A: The manufacturing overhead are applied to production on the basis of estimated activity rates.

Q: The difference between a department’s gross profit and its operating expenses is called(a)…

A: Operating expenses are those expenses which are related with the operations of the business.

Q: Who in the typical firm or organization is responsiblefor cost management?

A: Cost Management:   Cost management involves the development and use of cost management information…

Q: The direct method as used is one method that can be used to re-assign service department cost.…

A: Overhead refers to continuing business expenses that are not directly related to the production of a…

Q: Why should the accountant distinguish between transferred-in costs and additional direct material…

A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other…

Q: What managerial role does I. Kurien assume in his approach to aftaining his division's goal of…

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Q: How is cost accounting information used by management? Why is unit cost information important to…

A: Cost Accounting:-It is a method of calculating and assessing the cost and expenses related to the…

Q: Discuss the role of cost accounting in relation to various department in organisation.

A: Introduction: Cost accounting is a form of managerial accounting that aims to capture a company's…

Q: What types of management reports are prepared by the cost accounting system?

A: Definition: Cost accounting systems: It is a system which measures, record, and reports the product…

Q: How do budgeted cost rates motivate the support-department manager to improve efficiency?

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Q: How is activity-based cost allocation useful to management for control and evaluation of the…

A: Note : We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Why is the concept of Equivalent Units central in the measurement of the performance of a divisional…

A: Process costing represents the costing method that represents the different stages of the production…

Q: Suggest a reasonable basis for allocating thefollowing indirect expenses to departments: janitorial…

A: Indirect costs are costs that are incurred indirectly for production or manufacturing of goods.…

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.