For each of the following costs, indicate whether the amount is a direct or indirect cost of the equipment maintenance department. Also indicate whether each cost is at least partially controllable by the departmentsupervisor.1. Cost of plant manager’s salary, which is allocated to the maintenance department.2. Cost of property taxes allocated to the maintenance department.3. Cost of electricity used in the maintenance department.4. Depreciation on the building space occupied by the maintenance department.5. Idle time of maintenance department employees.

Q: Identify which of the following transactions andevents are product costs and which are period…

A: The costs which can directly be attributed to a product is known as Product costs. The costs which…

Q: As a plant accountant, you have been directed by the new plant manager to expense all manufacturing…

A: This particular directive is not agreed as a plant accountant because expensing all manufacturing…

Q: Which of the following costs is a direct cost for a manufactured product? A) Depreciation Expense…

A: The direct cost is expense that can be directly traceable to specific product.

Q: Which of the following is part of factory overhead cost? a.depreciation of sales person's vehicle…

A: Cost accounting system: Cost accounting system of an organization consists of procedures and…

Q: Consider which of the above costs is relevant to the decision situation? a. The cost of existing…

A: Option (b) i.e. The cost of special electrical wiring, in an equipment acquisition decision, is the…

Q: Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and…

A: A cost allocation approach establishes what services are delivered and how much they cost. A cost…

Q: QUESTION 1: Identify the right answer for the following statements. The salary of the director of a…

A: The sum of all expenses incurred in producing an item or service that has been sold is known as the…

Q: Which of the following is a product cost? A) Sales commissions B) CEO's salary C) Delivery van…

A: Product costs are related to manufacturing and are part of cost of inventory.

Q: Identify each of the following costs as either a product cost or a period cost. Factory maintenance…

A: Period costs: These costs are not related to inventory, hence, they are not added to inventory…

Q: which one of the following is not an example of a committed fixed cost

A: The fixed cost which incurred due to the past commitments of the organisations is called the…

Q: Which of the following costs would be considered a period rather than a product cost in a…

A: The product costs are the costs that are directly or indirectly related to the production process.…

Q: Assume that Kizzle's management allocates Maintenance costs based on the number of service calls.…

A: Total Maintenance cost can be computed by adding Maintenance costs with the cost allocated from the…

Q: Which of the following costs is not a product cost? * 1 point a. Depreciation on the plant installed…

A: Production or product costs allude to the expenses acquired by a business from assembling a product…

Q: The following are classified under period costs, except: * 1 point a. Depreciation of…

A:

Q: Cebu Pacific has two operating departments, Freight and Passenger, and two service centers,…

A:

Q: Which one of the following is not an example of a committed fixed cost? a. The salary of the deputy…

A: Fixed cost refers to those cost which do not change with increase or decrease in production…

Q: Identify each of the following costs as either a product cost (PROD) or a period cost (PER).…

A:

Q: The following is a partially completed lower section of a departmental expense allocation…

A: Operating costs are the expenses incurred from normal, routine, and day-to-day business activities…

Q: The Department of Natural Resources is responsible for maintaining the state’s parks and forest…

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: Within the accounting system of a group of companies, the following types of expenses are incurred.…

A: Cost item which are Considered within Property, Plant & Equipment :-   Property, Plant, &…

Q: Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three…

A: Indirect costs are also known as overhead costs. These costs can not be allocated directly to the…

Q: Below is a table showing the various costs incurred by various companies. In each column, indicate…

A: Solution:- Indication of  the proper classification of these costs as follows:- Manufacturing costs…

Q: Which one of the following is an example of a discretionary fixed cost? a. The depreciation cost of…

A: A discretionary fixed costs are those fixed which are avoidable for some shorter period and these…

Q: Which of the following is NOT a period cost? Cost of a seminar concerning tax law updates that was…

A: Cost is the amount of expenditure related to the item such as products, customers, activities,…

Q: Eccles Corporation uses an activity-based costing system with three activity cost pools. The company…

A: Workings:

Q: For manufacturing firms, inventoriable costs include ________.   a. plant supervisor salaries.…

A: All the production costs become part of the inventory. It includes raw material, labor expenses,…

Q: Classify the above costs of Santana Corporation into activity cost pools using the following:…

A: 1). Machine setup, indirect materials   - Machine setup.2). Inspections  - Quality control3). Tests…

Q: Classify the following items as Direct materials, Selling and administrative expense, Factory…

A: Direct materials: Direct materials are the raw materials that are directly associated with the…

Q: Which one of the following discretionary fixed cost? The salary of the deputy manager of the factory…

A: Discretionary cost is the cost can be eliminated or reduced without  at the discretion of the…

Q: Identify each of the following costs as either a product cost (PROD) or a period cost (PER).…

A:

Q: Determine whether each of the following costs should be classified as product costs or period costs.…

A: Product cost means the cost of producing one unit of finished goods. Period cost means the cost that…

Q: The following is a partially completed departmental expense allocation spreadsheet for Brickland. It…

A: Generally overhead expenses are allocated on the basis of their respective  department . Here…

Q: ow is a table showing the various costs incurred by various companies. In each column, indicate the…

A: Manufacturing overheads refers to all the indirect cost which is made in order to manufacture the…

Q: The cost of inventories shall comprise all costs of purchase, costs of conversion and other costs…

A: As per IFRS on Inventory valuation  The following  are not included  in Cost of inventory…

Q: Below is a table showing the various costs incurred by various companies. In each column, indicate…

A: Solution:- Indication of the proper classification of these costs as follows:- Introduction:-…

Q: For each of the following costs incurred in a manufacturing operations, indicate whether the costs…

A: Following is the answer to the given question

Q: Which of the following is a direct cost with respect to producing a motor car? a. Salary of…

A: The question requires us to find Direct cost with respect to producing a motor car.

Q: John Company has two service departments, Maintenance and Human Resources. John Company also has two…

A: Total cost is the overall cost incurred in the process of manufacturing the goods during the…

Q: Identify the following as elements of first cost or annual operating cost: (a) direct materials, (b)…

A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product.

Q: Using the information provided, prepare the following financial statements: (1) Statement of…

A: We are given the trial balance of Aldie Ltd. as on 31st Dec.  2017. Based on which Statement of…

Q: Which one of the following is an example of a discretionary fixed cost? O a. The property taxes of…

A: Discretionary fixed cost means that cost which is up to our discretion whether to spent it or not .…

Q: Indicate whether each of the following should be considered a product cost or a period cost. I you…

A: Direct costs: Costs which are directly traceable to the product called direct cost. Example : Direct…

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.…

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.