q8 Which ONE of the following is not identified as a reason for determining the full cost of an item?O a. Pricing and output decisionsO b. Exercising controlO c. Assessing relative efficiencyO d. Making short-term, spare capacity decisions

Cost refers to the compiled sum of all the expenses involved while manufacturing a product.

Answered: ing control ing relative efficiency…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 10MC: Which of the following is one of the two approaches used to analyze data in the decision to keep or...

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Similar questions

Why are there objections to using absorption costing when segment reports of profitability are being prepared?
What advantage does the FIFO cost method have over the average cost method relative to providing information for cost control?
Which of the following is one of the two approaches used to analyze data in the decision to keep or discontinue a segment? A. comparing contribution margins and fixed costs B. comparing contribution margins and variable costs C. comparing gross margin and variable costs D. comparing total contribution margin under each alternative
For which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard cost
Discuss how financial data prepared on the basis of variable costing can assist management in the development of short-run pricing policies.
Which statement is correct? A. Activity-based cost systems are less costly than traditional cost systems. B. Activity-based cost systems are easier to implement than traditional cost systems. C. Activity-based cost systems are more accurate than traditional cost systems. D. Activity-based cost systems provide the same data as traditional cost systems.
Explain how the high-low method is used for cost estimation. What, if any, are the limitations of this approach to cost estimation?
Explain why changes in value-stream profitability may be better information than individual product cost for certain decisions.
Can direct materials ever be irrelevant in a make-or-buy decision? Explain. Give an example of a fixed cost that is relevant.
What are considered direct costs in segment analysis?
Although the cost-plus approach to product pricing may be used by management as a general guideline, what are some examples of other factors that managers should also consider in setting product prices?
How does absorption costing differ from variable costing? When will absorption-costing operating income exceed variable-costing operating income?

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ing control ing relative efficiency short-term, spare capacity de