The following statements are correct except? A. ABC eliminates issues of over or under absorption B. CDR is calculated as total cost pool of the activity cost center divided by total cost driver of the activity C. ABC method and traditional method are used to apportion overhead cost D. ABC method is a replacement for a company’s usual traditional method

Q: If the Activity-Based Costing (ABC) method's main intention is to find a possibility to cut the…

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

Q: Which of the following is not a product cost? Multiple Cholce O Direct materlals ) Direct labor…

A: Product cost is that which is not included in the direct manufacturing of the goods. Direct…

Q: Which of the following best describes costs assigned to the product under absorption costing method?…

A: Absorption costing includes cost of a unit of product as direct material, direct labor and both…

Q: Overhead allocation based solely on a measure of volume such as direct labor-hours:   A. is a key…

A: The allocation of overhead is the process of applying the indirect cost of manufacturing to the…

Q: Which overhead allocation methods do not charge support department costs to a support department…

A: Overhead: It is the indirect cost incurred in addition to the direct costs for manufacture of…

Q: In a manufacturing company using absorption costing, the fixed costs associated with idle production…

A: The question is related to the Absorption costing.

Q: Time-driven ABC requires estimates of onl

A: Time-Driven Activity-Based Costing-: Time-driven ABC allows managers to document their expenses on…

Q: Under variable costing, fixed manufacturing overhead is expensed at the time the units are produced.…

A: There are two costing system followed by the organization. (1) Variable costing method (2)…

Q: Selling and administrative expenses are considered to be: a. A period cost under variable costing b.…

A: Selling  expenses means the expense incurred while selling the goods like sale men commission , sale…

Q: he following statements is true? bsorption costing treats fixed overhead as an expense in the period…

A: The income statement is prepared using various methods as absorption costing and variable costing.…

Q: Which of the following statements is true Activity based costing can only be used in manufacturing…

A: Activity based costing system is a costing system which allocates or divides cost between various…

Q: Which one of the following is not correct regarding the predetermined overhead rate? O a. The…

A: The predetermined overhead rate is used to allocate manufacturing overhead costs during current…

Q: Which of the following statements is true of activity-based costing? O a. Activities are the cost…

A: Activity based costing is a type of costing system in which all indirect costs or overhead costs are…

Q: All of the following statements about an operation-costing system are true except: A direct material…

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

Q: Under-allocated manufacturing overhead costs are always the result of which of the following…

A: Under Allocated manufacturing overhead occurs when Applied overhead are less than the actual…

Q: Which of the following is true about absorption costing? No fixed factory overhead is charged to…

A: Solution: The true statement about absorption costing is that "over-applied factory overhead is…

Q: Under-applied manufacturing overhead costs are always the result of which of the following…

A: Actual overhead is the actual expense incurred related to the overhead during the period whereas…

Q: Which of the following are true regarding activity-basedcosting? a. A primary goal of using ABC is a…

A: Activity-based costing: It is a method that helps in finding the activities performed by a company…

Q: This entire amount is usually a differential or relevant cost Direct cost Period cost Conversion…

A: Relevant costs are the costs that can be avoidable cost and these costs are incurred only when a…

Q: An allocation base! O a. is a measure used to assign prime costs to products and services O b.…

A: An allocation base is the basis on which Cost accounting allocates overhead costs.  An allocation…

Q: There are three categories of costs: fixed costs, variable costs and semi-variable costs. Which of…

A: Semi-variable cost includes both fixed and variable costs. In this, most of the part is fixed but…

Q: . Enter the dollar amount of each cost item under the dp tems in the preceding list. Note that each…

A: Given that, Quarterly cost data of level of operations are given at 100% capacity of operating. So,…

Q: The EUP will be the same under FIFO method and weighted average methos if there is no beginning work…

A: FIFO means first in first out. Beginning work in process is the goods which is yet to complete and…

Q: Which of following is not correct about normal costing? Select one: O a. Product cost includes the…

A: Option a (Product cost includes the applied indirect manufacturing cost) is not correct about normal…

Q: equired: Identify each cost as either a product cost or a period cost. If a product cost, classify…

A: The costs are classified as product costs and period costs. The product costs are directly or…

Q: If the predetermined overhead rate is based on the estimated level of activity for the current…

A: There are two main type of costs incurred in manufacturing the goods; 1) Direct costs and 2)…

Q: All the following can be used as an allocation base, EXCEPT: O a. direct machine hours O b. direct…

A: Allocation base generally used for overhead allocation should be in line with production activity ie…

Q: Which of the following statements is true? Select one: O a. The most complex of the cost estimation…

A: High-low method: It is the method of estimating the variable cost per unit and the fixed costs by…

Q: Which of the following describes a fixed cost? O a. total cost that fluctuates with changes in…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: All of the following is correct regarding underapplied manufacturing overhead except: O a. The…

A: The manufacturing overhead is recorded by debiting the manufacturing overhead account by the…

Q: Classify each cost element as either fixed, variable, or mixed

A: Variable Cost: variable cost is the cost that varies in total cost with change in the unit…

Q: Which of the following statements is true of activity-based costing? O a. ABC ignores the allocation…

A: Activity based costing represents the costing method where the company identifies the cost pools and…

Q: Which of the following is false? Multiple Cholce Overhead costing accuracy is Improved by the use of…

A: A departmental rate of overhead is a charge that is based on the units of production made by various…

Q: Which of the following statements is TRUE?   a. Batch cost shall be the cost of production or…

A: Solution: Statement A= false  Because Process costing shall be the cost of production or operation…

Q: The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of…

A: The process of allocating overheads to respective activities is called activity based costing

Q: Support department costs are applied to products as a part of a.fixed manufacturing costs b.fixed…

A: Support department costs are the costs incurred in the support department which are allocated to the…

Q: Which of following is not correct about normal costing? Select one: a. Predetermined rate is used to…

A: Normal Costing used actual data in order to calculate the cost of the product. This costing drives…

Q: Under which costing system non-manufacturing costs may be included in ?calculating product costs…

A: There are different types of costing systems namely activity based costing system, absorption…

Q: Activity Cost Pool Activity Measure Assembling units Processing orders Supporting customers Other…

A: Answer: Part 1:

Q: Which of the following statements is true? (You may select more than one answer.)a. Conversion costs…

A:

Q: Under activity -based costing , second stage allocation would involve a. Calculating activity rates…

A: Activity based costing system is a costing system which assigns costs on the basis of activities and…

Q: The direct method as used by Ultimate Manufacturers is one method that can be used to re-assign…

A: Service department costs are the indirect costs to units produced and therefore these are known as…

Q: Which of the following statement is false?         Multiple Choice   Fixed manufacturing overhead…

A: Under the absorption costing method, the fixed manufacturing overhead is allocated to units produced…

Q: hich of the following measures is appropriate as cost driver for personnel administration costs? a.…

A: Cost drivers are the factors which have a direct impact on the overall cost structure of the…

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.