The traditional (Volume -based cost systems ) tend to : a. under -cost low -volume products and under - cost high -volume products b. under -cost low -volume products and over -cost high - volume products . c. over -cost low -volume products and under -cost high - volume products . d.over -cost low -volume products and over -cost high -volume products

The traditional (Volume -based cost systems ) tend to : a. under -cost low -volume products and under - cost high -volume products b. under -cost low -volume products and over -cost high - volume products . c. over -cost low -volume products and under -cost high - volume products . d.over -cost low -volume products and over -cost high -volume products

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 15MC: When operating in a constrained environment, which products should be produced? A. products with the...

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For which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard cost
When operating in a constrained environment, which products should be produced? A. products with the highest contribution margin per unit B. products with the highest contribution margin per unit of the constrained process C. products with the highest selling price D. products with the lowest allocated joint cost
Which statement is correct? A. Activity-based cost systems are less costly than traditional cost systems. B. Activity-based cost systems are easier to implement than traditional cost systems. C. Activity-based cost systems are more accurate than traditional cost systems. D. Activity-based cost systems provide the same data as traditional cost systems.
When a traditional, volume-based costing system is used, which of the following products is most likely to suffer from cost distortion? Select one O a. A low-volume, low-complexity product ObA low-volume, high-complexity product O CA low-volume, medium-complexity product O d. none of the given answer O e. A high-volume, medium-complexity product
Briefly explain two factors that tend to result in product cost distortion under traditional, volume-based product costing systems.
Which among the following is not true about traditional costing system? a. This method allocates greater proportion of overheads to high volume products b. This method avoids the phenomenon of product cost cross subsidization c. This method allocates smaller proportion of overheads to low volume products d. This method leads to cost smoothing
Which of the following statements is false ? a. Volume-based costing has typically resulted in undercost for high-volume products and overcost for low-volume products . b. All the statements are false . c . Activity-based costs per unit are always greater than volumebased costs per unit. d. Activity-based costing typically provides less information about product costs while requiring more recordkeeping. e. Different cost allocation methods are constructed so that they typically result in the same or similar estimates of how much it costs to make a product.
Product costs under variable costing are typically: Group of answer choices A. higher than under absorption costing B. lower than under absorption costing C. the same as with absorption costing D. higher than absorption costing when inventory increases
Marginal Costing refers to product costing methods that exclude ________ from product costs a) Fixed costs b) Variable cost c) Production cost d) Period cost
Sales pricing decisions do not usually consider A - total product absorption costsB - costs of competitors productsC - prices of competitors productsD - elasticity of demand for the product
Which of the following is NOT a problem associated with standard cost accounting? a. Standard costing motivates management to produce large batches of products and build inventory. b. Applying standard costing leads to product cost distortions in a lean environment. c. Standard costing data are associated with excessive time lags that reduce its usefulness. d. The financial orientation of standard costing may promote bad decisions. e. All of the above are problems with standard costing.
A mixed cost contains: a variable element and a fixed element. both selling and administrative costs. both retailing and manufacturing costs. both operating and nonoperating costs.