The support department allocation method that is the most widely used because of its simplicity is the: a. reciprocal allocation method b. sequential allocation method c. step-down method d. direct allocation method

Q: Using the direct method, what amount of Warehouse Department costs will be allocated to Department…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Which one of the following statements is incorrect? A. The reciprocal method is rarely used in…

A: The following statement is Incorrect:: In the step method, any amount of the allocation base that is…

Q: Explain the following as approaches to analysing the costs of the logistics function:  (i)…

A: Following are the analysis of costs of logistic functions: 1. Fixed Costs/Variable cost Fixed cost…

Q: Use the following data to prepare a model that allocates the support departments using the three…

A: Cost allocation: Cost allocation can be defined as the process of distributing the    cost between…

Q: Use the following data to prepare a model that allocates the support departments using the three…

A:

Q: Explain  how absorption costing technique could improve organisational performance

A: In contrast to variable costing, absorption costing considers all of the costs of manufacturing, not…

Q: Which of the following is a limitation of activity-based costing? More cost pools Poorer management…

A: Introduction: ABC costing also called as Activity based costing. According to the consumption cost…

Q: Which of the following is the most difficult but most accurate of the commonly used methods for…

A: The cost of support departments is allocated to the production departments. Some a support…

Q: When allocating support department costs, managers must identify cost pools.  The choice of cost…

A: Cost pools represents the various cost incurred in the production process of the company that have…

Q: In a management setting, does Transfer Pricing affects the previous topics - Absorption & Variable,…

A: Transfer pricing is the strategy which is adopted by the company in order to charge the amount for…

Q: In choosing the cost pool, the simplest allocation method is

A: In choosing the cost pool, the simplest allocation method is b. Activity center allocation

Q: 4) ABC systems create A) one large cost pool B) homogeneous activity-related cost pools C)…

A: Activity-based costing is a more precise way of estimating the cost of a product or service,…

Q: Which of the following would be the most appropriate cost driver allocating the service department…

A: Cost drivers are direct reason of cost incurred. Allocation of overhead is made on the basis of cost…

Q: Standard costing improves the control functions” discuss this statement give some examples.

A: Standard Costing: It is the accounting system in which standard cost is measured with actual cost to…

Q: how can we use step down cost allocation for ? From service center to mission center

A: Answer

Q: What are support departments, and why are their costs allocated to other departments?  What process…

A: Support departments are those departments which helps or provides support to other operation…

Q: What are the limitations of joint product and departmental cost allocation?

A: The limitations of joint product and departmental cost allocation.

Q: Activity-based costing is preferable in a system when multiple products have similar product…

A: Under activities based accounting, the overhead cost is applied to different activities differently.…

Q: In a homogeneous cost pool, all costs have a similar cause-and-effect relationship with the cost-…

A: The homogeneous cost pool is a collection of different costs whose changes are based on single base.…

Q: Activity-based costing is preferable in a system: Group of answer choices A. when multiple products…

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

Q: Explain how far you agree that the Activity-Based-Costing system is a superior model compared to the…

A: Cost accounting is considered as a process that is followed by a business to estimate the total cost…

Q: Use the following data to prepare a model that allocates the support departments using the three…

A: Sequential Method:  Under this method cost of the support department is distributed to the remaining…

Q: There are three general strategies identified as the basic co

A: Strategic Cost Management:  Strategic Cost Managemeent is the provision and analysiis of Cost and…

Q: Which service department cost allocation method provides for reciprocal allocation of service costs…

A: The correct answer is (A) Method of Algebra or Algebraic Method

Q: activity-based costing is preferable in a system a) when multiple products have similiar product…

A: To assign overhead costs to products, the methodology which is used is called Activity-Based…

Q: Why does dual cost allocation improve the resulting allocation of service department costs?

A: Dual Cost Allocation segregates total costs into two parts Fixed Costs. Variable Costs. Each…

Q: Match the term with the co decentralized cost center

A: (1) Decentralized = This type of company typically promotes from within Reason: This type of company…

Q: The reciprocal allocation method a.is the most widely used because of its simplicity b.requires the…

A: The reciprocal technique allocates expenditures incurred y service departments to other departments…

Q: activity -based costing over traditional volume -based allocation method

A: Definition: Activity Based Costing: The costing method which identifies the activities of an…

Q: Explain the difference between the engineered-cost and discretionary-cost approaches to…

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

Q: How to allocate indirect costs to multiple departments using an ABC costing driver?

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Q: Which of the following methods recognizes some (but not all) of the services that occur between…

A: Services- It is an intangible thing which can not be seen by any person but anyone can feel it like…

Q: Which of the following statements is true with regard to activity-based costing?   Multiple Choice…

A: The overhead is applied to the production using various methods as traditional costing and activity…

Q: Which service department cost allocation method provides for reciprocal allocation of service costs…

A: Method of Algebra (or Reciprocal Method): Under this method, simultaneous equations are used to…

Q: Explain a hybrid costing system. Identify a product or service operation that might be suited to a…

A: Hybrid Costing:   Hybrid costing is a method of cost accounting in which the elements of job and…

Q: Which of the following is TRUE regarding the total service department cost allocated by the three…

A: The overheads of the servie department has to be allocated to the production department so that the…

Q: activity-based costing

A: Activity based costing refers to the method of costing assigning cost of activity to all the…

Q: How would merging of two systems affect the costing of the new system including the impact on…

A: The act of distinguishing, investigating, , measuring, interpreting, and conveying the monetary data…

Q: Dual allocation is a cost allocation approach that separates direct and indirect costs, tracing the…

A: Dual allocation method: It involves two type of cost pools, fixed cost and variable cost.

Q: “To ensure unbiased cost allocations, fixed costs should be allocated on the basis of estimated…

A: Cost:   It is the monetary value incurred by a company to produce a product or a service.

Q: Explain and illustrate a hybrid costing system

A: Hybrid costing system is that costing system which has components of both process costing and job…

Q: How to allocate indirect costs to multiple departments using an ABC cost driver?

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Q: Service departments are sometimes called indeterminate cost centers, while production departments…

A: Many firms need support activities also as core activities to provide their product and/or services.…

Q: A concept which is commonly employed with allocation bases related to size is

A: Cost Allocation:   The process of assigning the cost to the cost object is cost allocation. The cost…

Q: Which of the following statements is true with regard to activity-based costing? Multiple Cholce…

A: Activity-based costing is a method of costing that identify activities in an business and assigns…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.