optimal costing system considerations of the firm

Q: 1.Choose all of the following statements that are true. a. Opportunity costs and sunk costs are not…

A: a. Opportunity costs are not shown in the financial statements of companies. While, sunk costs…

Q: In deciding which product lines to emphasize when a production constraint exists, the company should…

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Q: Calculate the company's price earning ratio

A: Step 1 PE ratio is the ratio of earnings per share proportion to the market price per share.

Q: a. What is the box annual sales volume for each area to be able to compete on a competitive…

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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: Which of the following may form the basis for the price a company (working at full capacity) should…

A: Opportunity costs : The benefit foregone by the company by employing the resource in other…

Q: Which one of the following depends on the level of output or activity? O building rent cost O…

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

Q: How should a company decide on the number of cost pools it should use to allocate costs to…

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With the…

Q: Required a) Björn is having some trouble crunching the numbers and has asked for your help…

A: 1. There are four ethical standards of professional conduct as developed by the Institute of…

Q: Choose the correct answer: The outcome of resource utilization divided by the amount of resources…

A: Manufacturing cycle efficiency helps to measure the percentage of time spent in product…

Q: “Activity-based costing is the wave of the present and the future. All companies should adopt it.”…

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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: In the Interesting box, write down how each costing method would contribute in achieving the main…

A: First-in First-out method (FIFO) method: It is a method of pricing the issues of materials, in the…

Q: Consider the following statements about absorption costing and variable costing: Variable costing…

A: Absorption costing and variable costing are managerial accounting and financial reporting cost…

Q: What is the company’s contribution margin (CM) ratio?

A: Contribution margin is the amount of sales revenue left after charging variable expenses.…

Q: What real-world company do you think would use activity-based costing?  Why?

A: Activity-based costing is a method that is used to identify the activities in an entity and assigns…

Q: How would you recommend stabilizing the company's unit product cost?

A: Unit cost of a product is determined by dividing the total cost of the units produced by the total…

Q: What is the difference between variable and absorption costing. How does these variable costing help…

A: Absorption costing is a costing mechanism where all the costs related to the production are assigned…

Q: 1. Relevant of differential cost analysis a takes all variable and fixed costs into account to…

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

Q: Explain the concept of customer profitability analysis. Give examples of cost drivers used in this…

A: Customer Profitability Analysis is a technique of noting down and analysing various costs and…

Q: Briefly explain the ten cost drivers in a company.

A: The question is related to the Activity Based Costing. The Cost driver is a facor that causes a…

Q: If a firm operates at capacity, the minimum transfer price should be the: external market price any…

A: Solution: If a firm operates at capacity, the minimum transfer price should be the "external market…

Q: Which of the following may form the basis for the price a company (working at full capacity) should…

A: There are several type of costs that are being incurred in business. These are fixed costs, variable…

Q: In deciding which product lines to emphasize when a production constraint exists, the company should…

A: Constraint: Constraint is a factor that limits the production of a product or sale of a product.

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

A: ABC (Activity based costing) framework was created to manage the drawbacks of customary costing…

Q: tandard cost systems provide companies with a number of advantages, argue the statement.

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Q: Target costing A target cost is 'a product cost estimate derived by subtracting the desired profit…

A: Target costing: A costing system that emphasizes on the minimization of existing and future design…

Q: 1. What is contribution margin per unit and the direct labor hour for products A & B. 2. What is the…

A: Key Factor Analysis If manufacturing several products  use the same limited resource,  Limited…

Q: Which two categories of costs influence the choice of how manystorage facilities a firm might have…

A: The management of the company makes a decision that benefits the company most. when an investment or…

Q: Discuss cost functions and assess the importance of causality in estimating cost…

A: Cost Function which are explained in the cost Accounting which can be determine the mathematical…

Q: Which of the following characteristics would be an indicator that a company would benefit from…

A: Activity-based costing: Activity-based costing is the method of costing is used by the company in…

Q: Discuss two potential uses of the activity based cost information for decision-making, to the…

A: The activity costing method is a method of assigning overhead other indirect costs to goods and…

Q: Based on the data below calculate the company's combined cost?

A: As per our protocol and guidelines we provide solution to the one question only in case there are…

Q: What is the purpose of cost allocation in terms of economic decisions, motivation and justifying…

A: INTRODUCTION: Cost allocation is the process of identifying, accumulating, and assigning costs to…

Q: a) Compute contribution margin per pound of material for each product. (b) If demand is limited,…

A: Contribution Margin per Limited resource Contribution margin per unit of limited resource is…

Q: How may managers at EY Australia and Unilever benefit from the activity-based cost information?

A: Activity costing is a way of attributing the company's overhead and other indirect expenses to its…

Q: Select the best answer from the five listed below to fill in the blank. The best transfer price for…

A: transfer price are also known as the transfer cost which tells the amount that is set for the…

Q: Contribution Margin, Cost-Volume-Profit Analysis and Break-Even Point (Overview) Fixed, Variable…

A: -Variable cost refers to an expenditure that varies in gross dollar value as the degree of…