NOT relevant to the calculation of the economic order quantity of a raw material:

Q: What is the difference between a product cost and a period cost?

A: Product costs: Product costs are the costs which are incurred in the production of the goods. These…

Q: Why is it important to consider the relationships amongcost, quality, and selling prices when…

A: The question has covered the relationship between Cost, Quality , and Selling Price For setting up…

Q: What are the factors affecting equipment costs?

A: Equipment cost is the total cost incurred to bring the equipment in the useable state. It includes…

Q: In a process account, abnormal losses are valued: A. at their scrap value. B. the same as good…

A: 1 An odd loss happens whilst anticipated output exceeds real output. 2 The scrap value of an odd…

Q: How does the existence of excess production capacity affect the decision to accept or reject a…

A: Special order:   The order received from special customers except regular customers at special price…

Q: present. What is the cost of direct material used?

A: Direct material used = Opening Stock + Raw materials purchased - Closing Stock

Q: What are the Nonmanufacturing costs?

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

Q: Why is it that product costs are distinguished from period costs?

A: Product cost is the cost that is incurred to manufacture the product. The product cost will include…

Q: Why is it important to consider the relationship among cost, quality, and selling prices when…

A: The question has covered the relationship between Cost, Quality , and Selling Price For setting up…

Q: “In accounting for spoiled units, we are dealing with cost assignment rather than cost…

A: Explain the reason in accounting for spoiled units are done with cost assignment rather than cost…

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

A:

Q: The cost of labor that is not clearly associated with specific units or batches of product is…

A: The cost which is directly concern with the product is known as a direct cost. while cost that is…

Q: adjustment of underapplied manufacturing overhead cost

A: Underapplied manufacturing overhead cost are disposed by increasing cost of goods sold. This will…

Q: Which of the following would be an acceptable measure of activity for a material handling activity…

A: For a material handling activity cost pool, number of material moves and weight of materials moved…

Q: What is Units-of-production method?

A:

Q: what are relevent cost of direct material

A: The management of the manufacturing firm has to take certain decisions regarding the…

Q: Is it possible to control financial totals without physicalcontrol of materials in manufacturing?

A: Manufacturing is the process of large scale production of materials that is generally done through…

Q: What are the arguments in favor of treating fixed manufacturing overhead costs as period costs?

A: Period costs: Period costs are the costs other than the product costs. These costs are not incurred…

Q: Discuss the fundamental risk and control issues associated with fixed assets that are different from…

A: Fixed Asset: The asset used by company for more than one year is known as fixed asset. Fixed asset…

Q: What are the arguments in favor of treating fixed manufacturing overhead costs as product costs?

A: Following are the arguments in treating fixed manufacturing overhead costs as product costs: For…

Q: Determine the following is best described as a fixed, variable, or mixed cost with respectto product…

A: Variable Cost:   The cost which changes with the change in level of activity is called a variable…

Q: Define the term Raw-materials- inventory?

A: Inventory is the materials such as raw materials, finished products, in-process goods that are…

Q: Cost per unit for material?

A: Weighted average method is one of the method of process costing. Under this method, equivalent units…

Q: What are the equivalent units of production?

A: Work-in-Process: It refers to the partially finished goods of a company waiting to be completed.…

Q: Provide the meaning of material cost and the procedure for estimation of material cost

A: Material costs are those costs incurred to produce a product or provide a service. Any product has a…

Q: How does time and motion study works? How could this method or process quantify the labor standard…

A: Cost accounting: Cost accounting is the process of classifying, recording, analyzing and…

Q: In a process cost system, conversion costs consist of direct material and direct labor * O Ture…

A: Cost accounting is the process of estimating the cost of production in a business. Cost accounting…

Q: Do the engineering decisions account for the majority of product costs?

A: Yes, engineering decisions will account for the majority of the cost of the product. The main task…

Q: What is the cost of materials transferred to finished goods?

A: Finished goods: These are the goods that have crossed the boundary of the manufacturing process or…

Q: What is the formula used to determine the amount of direct materials to be purchased?

A: Direct materials:   Direct materials are the materials and supplied that are directly consumed for…

Q: How are cost of production reports used for controlling and improving operations?

A: Production cost report: A production cost report is a comprehensive report prepared for each…

Q: Which of the following is not a manufacturing cost? * Manufacturing overhead O Direct materials O…

A: In cost accounting, There are many types of costs or expenses incurred for the production of the…

Q: Define “cost” as applied to the valuation of inventories.

A:

Q: What features of the cost accounting system would be expected to prevent the omission ofrecording…

A: Cost accounting is the branch of Accountancy associated with the cost of materials used in the…

Q: Why are fixed-overhead costs sometimes called capacity-producing costs?

A: Overhead costs Overhead cost or overhead expenses refer to the cost which is used to increase the…

Q: What are relevant and irrelevant cost of direct materials, direct labor and misconception about…

A: Direct materials can be defined as the cost of materials that is used for the production of goods or…

Q: How does the use of direct and indirect materials in production affect the accounts?

A: Step 1: Direct materials are the raw materials that are used directly in the process of production.…

Q: What is the difference between direct materials, indirect materials, direct labor, and indirect…

A:

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.