The cost of is not included in the cost of production a. Abnormal loss b. Direct costs c. Normal loss d. Scrap

Q: Which of the following is an example of a cost item that should be classified as an internal failure…

A: This question deals with the cost of quality or quality cost. Cost of quality means a cost which is…

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: Overapplied overhead will result if A. the plant is operated at less than expected capacity. B.…

A: Overhead is any expense incurred to support the business that is not directly tied to the creation…

Q: Which of the following is not included in the calculation of the lifecycle cost of a product?…

A: Cost of disposal refers to the additional expense incurred as a result of the disposal of an asset,…

Q: Which of the following is not relevant is not relevant in determining weighted average unit cost in…

A: Cost of beginning inventory is relevant because it is added to the current period cost. Equivalent…

Q: Depreciation of Machinery would not be an element of factory overhead? Select one: O a. True O b.…

A: Factory overheads consist of -  Factory expenses like factory rente,  Factory insurance  Energy cost…

Q: Indirect costs are known as: (a)  Avoidable costs (b)  Overheads (c)  Incremental costs (d)…

A: 1) Indirect costs means costs which are not directly related to cost of production. Indirect costs…

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: Which of the following situations involving loss units would most likely not result to a zero…

A: Loss during the process is not equivalent to zero production unit... Option C is correct

Q: Which of the following would not generally be considered a fixed overhead cost? a. Straight line…

A: Fixed overhead costs are those fixed indirect expenses in the business which are incurred in the…

Q: under the weighted average method, the equivalent units used to compute the unit costs of ending…

A: Solution: 1. False, under the weighted average method, the equivalent units used to compute the unit…

Q: Which of the following cost includes determining how much to order, cost of invoices, clerical labor…

A: Sunk cost refers to money that has already been spent and which can not be recovered. Sunk costs are…

Q: b) Cost Evaluations Cost of Handles Transferred to Packaging Cost of Unexpected Losses Cost of…

A: Work in Progress – Work in progress in cost accounting implies the value of goods whose production…

Q: Depreciation of Machinery would not be an element of factory overhead? Select one: a. True b. False

A: Factory overheads include all the indirect expenses incurred in the production process.

Q: For product costs to become expenses, The product must be completed The product must be finished The…

A: Cost of goods sold are considered as Expenses of the businesses. The cost of goods sold is…

Q: Which of the following is not relevant is not relevant in determining weighted average unit cost in…

A: Under the weighted average unit cost in process costing, the beginning inventory is combined with…

Q: Total Cost incurred if the company "fails after re- evaluating the making process"

A: The total manufacturing costs include all the expenses incurred by a company for the production of…

Q: An example of an appraisal cost would be: O Scrap O Process or product design O Product recalls O…

A: Cost of Good Quality is incurred in order to reduce the Cost of Poor Quality, so that overall Cost…

Q: Misleading cost numbers are most likely the result of misallocating: A) direct material costs B)…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

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: In Make or buy decision ,irrelevant costs are :  Select one: a. manufacturing costs that will be…

A: Under make or buy decision, decision needs to taken whether we should manufacture the product or…

Q: g form

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Q: A price that can't be quickly or efficiently linked to a cost object is referred to as: Additional…

A: The costs that are easily tracked to the product are known as the traceable costs. Special domestic…

Q: When contribution is positive but equal to fixed cost: a. There is loss less than fixed cost b.…

A: Contribution is the amount received after the variable cost or direct costs are deducted from Sales,…

Q: In a make or buy decision, the relevant costs include variable manufacturing costs as well as A.…

A: The only costs that are relevant in a make or buy decision are those which are affected by the…

Q: The cost of inventories does not include Salaries of factory staff. Irrecoverable purchase taxes.…

A: Cost of inventories includes all costs that are incurred for purchase of merchandise or goods like…

Q: Abnormal spoilage is properly classified as a. deferred charge b. extraordinary item c. period…

A: Abnormal Spoilage is considered as a period cost. ... Because abnormal losses are not necessary to…

Q: The cost of the material, which is left over after the production process is complete, is:…

A: The correct answer is :-  Considered rework  Because cost incurred after the production is not…

Q: Which of the following best describes a fixed cost?   A. It may only change in total when such…

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

Q: overestimated standard labor cos changes to the product specificat reduction in direct labor costs…

A: Direct labor cost is the difference between actual direct and standard direct labor rates at a…

Q: Represent the cost that will be affected by the decision being considered. Margin of Safety…

A: The relevant and irrelevant costs are important in decision making.

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: Which of the following is an example of a variable cost? a.Insurance on the production equipment…

A: Variable cost are those cost which changes according to the level of Production. In other words in…

Q: Whether any of the following sentences about abnormal spoiling is true? a. It is considered to be…

A: Spoilage refers to materials or components that have been damaged, which are beyond the capacity of…

Q: uestion: The total cost of spoilage chargeable to Revenue is (recognized as expenses) and the total…

A: Equivalent units concept is used when opening or ending work in progress is not 100% complete but…

Q: Which one of these is an example of a variable cost? a. Raw material expenses b. Depreciation costs…

A: Variable costs are those costs which incurs in proportion to volume of goods sold or services that…

Q: The type of process loss that should not be allowed to affect the cost of good units is called? a.…

A: Process costing is one of the method of cost accounting, which is used in industries where product…

Q: Under the weighted average method, the equivalent units used to compute the unit costs of ending…

A: Solution: 1. False, Under the weighted average method, the equivalent units used to compute the unit…

Q: What is cost per equivalent unit for material using weighted average? What is the cost assigned to…

A: In process costing, some units are not completed and consumed a portion of cost only so the…

Q: During the production process, company incurred normal spoilage and abnormal loss. Such losses are…

A: Normal loss are those losses which is unavoidable therefore included in the cost of good units in…

Q: 1. Is the spoilage a normal or an abnormal spoilage?  - Normal or Abnormal

A: Since you have asked multiple questions under a single question as theory regarding spoilage and…

Q: Show the solution in good accounting form. Thank you! Using FIFO, compute for the total cost…

A: The abnormal loss would be calculated based on the price of finished goods units. To determine the…

Q: Indirect cost is the cost that cannot be directly attributed to the production as these costs are…

A: Cost is the amount incurred in the regular course of the business. It may be direct or indirect.

Q: Which of the following is true of abnormal spoilage? a. It is considered to be part of production.…

A: Spoilage refers to materials or components that have been damaged, which are beyond the capacity of…

Q: In Make or buy decision ,relevant costs are :  Select one: a. manufacturing costs that will not be…

A: This question deal with the relevant costing concept and make or buy concept. As per the concept,…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.