Question 2 List as many possible bases of absorption (or 'overhead recovery rates') as you can think of.
Q: Requlred: 1. Prepare the first-stage allocatlon of costs to the activity cost pools. 2 Compute the…
A: Solution:-1 Allocation of costs to the activity cost pools Particulars Cleaning carpets…
Q: How does the Modified Accelerated Cost Recovery System (MACRS) givetaxpayers a break?
A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…
Q: Q.How do managers plan for variable overhead costs?
A: The cost which is dependent upon the level of output and changes if the level of output fluctuates…
Q: Which of the following is called minimum point of production at which total cost is recovered:…
A: The margin of safety sales is calculated as difference between current sales and break even sales.
Q: Comment on the problems that may follow from a decision to increase the overhead absorption rate in…
A: Cost-plus pricing is similar to the romance story genre in that it is often mocked while yet being…
Q: Search about how technique is efficient Analysis at the account level to estimate cost.
A: technique is efficient Analysis at the account level to estimate cost.
Q: Compare variable and fixed expenses.
A: Variable expenses are the expenses which change proportionately with a change in the activity…
Q: Fixed cost per unit ______ A
A: Under Marginal costing technique there are two types of costs . That is a) Fixed costs Fixed cost…
Q: Q- 2: and variable costing? What is the basic difference between absorption costing
A: “Since you have posted a many questions, we will solve first question for you. To get the remaining…
Q: Q2. Describe how total variable costs and unit variable costs behave with changes in the level of…
A: This is a theory question and we will explain Total variable cost and unit variable costs behave…
Q: 1.Discuss sunk costs and opportunity cost.
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Cost Behavior Ch. 6 Please provide the Break-Even formula and give an example and explain the…
A: Break-even is considered as break-even point.
Q: What are the different type of costs? Describe each.
A: In cost accounting, The accounting process deals with the total costs incurred in the production…
Q: 2) Which of the following is the type of cost calculated with a scientific and engineering approach…
A: A company will incur various costs to earn revenue. The costs can be either direct or indirect costs…
Q: Contribution Margin per Unit & Contribution Margin Ratio
A: Under Scenario 1: Particulars Daycare Boarding Grooming Total Sales price (a) $18 $25 $25…
Q: how can we use step down cost allocation for ? From service center to mission center
A: Answer
Q: Requirement 3. How can you obtain better estimates of fixed and variable costs? Why would these…
A: Fixed cost are those cost which are fixed cost for current period they don't change with change in…
Q: re mixed costs treated? Answer:
A: Mixed Cost - Mixed cost is the combination of two categories of costs, namely fixed and variable…
Q: 2) Refining a cost system requires: A) classifying as many costs as indirect costs as is feasible B)…
A: Refining a cost system means making some modifications to simple costing system that includes direct…
Q: What are the different types of Costs? (all type of Costs please like direct cost, indirect, fixed,…
A: Cost of a product is the amount incurred in the process of bringing the product to its final state.
Q: Mastery Problem: Contribution Margin, Cost-Volume-Profit Analysis and Break-Even Point (Overview)…
A: SOLUTION VARIABLE COST IS THE COST WHICH CHANGES WITH THE CHANGES WITH OUTPUT. VARIABLE COST PER…
Q: Explain variable overhead costs.
A: Variable Costing: “Variable costing is a method that allocates only variable manufacturing costs to…
Q: Identifying the relationship between the activity and the costs is a key step in which of the…
A: Scattergraph is a method of visual representation of the relationship between the cost & the…
Q: What does it means when the Overhead rates in the direct method have a figure which is higher than…
A: Overheads: It refers to the business indirect expenses that are required to run a business activity.…
Q: 3. The elements of CVP analysis include the following, except a. total fixed costs. b. unit variable…
A: Lets understand the basics. CVP analysis is abbreviation of cost - volume profit analysis. It is a…
Q: Question 2 Compare and contrast absorption and marginal costing.
A: The income statement is prepared on the basis of Marginal costing or absorption costing.
Q: For situations 1 trough 6, provide the following information: a. An estimate of the non-value-added…
A: Since you have posted a question with multiple sub parts, we will solve the first 3 sub parts for…
Q: explain each of Highest added value activity, to increase switching cost, and to increase entry…
A: Barriers to entry are obstacles or obstacles that make it difficult for a new business to enter a…
Q: Respond to the following statement: Appraisal cost would be high so wait for Failure Cost.
A: The company's aim will be to increase the profits by increasing the sales revenue, or by decreasing…
Q: Relevant range is the activity that affects the increase or decrease of costs Select one: O True…
A: Lets first understand the meaning of relevant range. Relevant range is a range at which fixed cost…
Q: Distinguish between fixed and variable costs while dealing with semi-variable expenses.
A: Fixed and variable costs: The term "variable cost" refers to a cost subject to change based on the…
Q: In Activity-based costing, activity measures may include all of the following except: O a. All of…
A: Activity based costing allocates the overhead costs on basis of cost drivers/activity driver
Q: Explain why it's assumed that the cost-time curve is straight. What is the most practical form to…
A: The project cost/project time tradeoff is a significant addition to the fundamental network analysis…
Q: 1) What is the assumption of cost structure? 2) Calculate contribution Margin
A: A company's overall expenses are comprised of both fixed and variable costs, and together they make…
Q: Question #2 What is absorption costing and marginal costing in the context of overhead costs?…
A: Overhead costs are the indirect costs incurred in operating the business. It does not include any…
Q: List as many possible bases of absorption (or 'overhead recovery rates') as you can think of.
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: LO 6.2ldentify appropriate cost drivers for these cost pools: A. setup cost pools B. assembly cost…
A: Cost Drivers: The direct cause of a cost is referred to as a cost driver. Fixed costs do not change,…
Q: Using the above information derive a cost function that can be used to predict the total production…
A: High-low cost estimation method is used to segregate the fixed cost and variable cost element in…
Q: Explain Overhead allocation and give at lest two examples
A: Overhead allocation: It is the apportionment of indirect costs to produced goods. It is…
Q: Question 3: Define the following: Downtime cost, Shrinkage, Coefficient of traction, Gradability,…
A: Machinery forms a major component of every organization's fixed assets, as they are the collective…
Q: What is the difference between delivery cycle time and throughput time? What four elements make up…
A: Difference between delivery cycle and throughput time: The delivery cycle is a complete process from…
Q: “All overhead costs are relevant in NPV analysis.” Do you agree? Explain.
A: Net present value:
Q: Explain very briefly the steps in traditional approach of overhead distribution. Explain how under…
A: The traditional costing method is used to allocate the factory overheads to the products on the…
Q: Conversion costs include direct labor and manufacturing overhead. Select one: O a. FALSE O b. TRUE
A: Conversion costs: It is sum total of direct manufacturing labor costs and manufacturing overhead…
Step by step
Solved in 2 steps
- Requirement 3. How can you obtain better estimates of fixed and variable costs? Why would these better estimates be useful to Gower? Cost classification into variable and fixed costs is based on ▼ , analysis. Gower may want to undertake ▼ analysis of costs, using ▼ to better estimate the fixed and variable components of costs.Match the activity with the most appropriate cost driver. Table 6.52.) find the efficiency rate 4.) find the overall equitment effectiveness
- 2. Explain the three (3) criteria are often used to evaluate cost drivers. explain the answer with proper examples. Thank you.2 disadvantages of activity based costingQ1. List the two types of fixed costs and give example. Q2. Present and explain the equation of the total mixed cost line. Q3. Why use an allocation base?
- Chapter 6 Question TF Please provide an explanation. I am struggling to understand the difference between absorption and variable costingQ4. In cost analyses, how are mixed costs treated? Answer: ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________1. Multiple-Choice Question - FIFO When using FIFO, A) Identical costs go to the balance sheet and the income statement. B) Management uses average costs to assign to the balance sheet and the income statement. C) Older costs go to the income statement; newer costs go to the balance sheet. D) Older costs go to the balance sheet; newer costs go to the income statement. Explain for the answer chosen please.
- Q2. Describe how total variable costs and unit variable costs behave with changes in the level of activity? ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________QUESTION 28 Which of the following is not a reason for cost allocation? A. Maximization of direct cost efficiency B. Cost-based reimbursement C. Cost determination of product or service D. Cross-department monitoring4) Design ABC system for EON and Brothers (discuss steps) 5) What are the Costs per unit of Alfa and Beta under traditional and ABC costing systems?What would be the prices of Alpha and Beta traditional and ABC costing systems? Comparethe costs and prices calculated in the two systems (Calculations should be shown in theappendix) and for analysis 6) Discuss your recommendation on the viability of ABC for EON and Brothers Ltd., given thefinancial director's concerns.
