true (T) or false (F) Service companies are not able to use process costing.

Q: Activity-based costing (ABC) O uses a single pre-determined overhead rate. O is less complex than a…

A: Activity based costing means where the product is valued on the basis of actual direct material ,…

Q: Which of the following statements is false? (You may select more than one answer.)a. Activity-based…

A:

Q: First: Activity-based management seeks to eliminate waste by allocating costs to products that waste…

A: Solution: First statement is false as "Activity-based management does not seeks to eliminate waste…

Q: TRUE OR FALSE A cost function is useful only in an activity-based costing system.

A: Answer:   A cost function is useful only in an activity-based costing system.     The statement…

Q: A downside to absorption casting is: A. not including fixed manufacturing overhead in the cost of…

A: Absorption costing demonstrates that all the expenses related to manufacturing a product are…

Q: WIP may not exist in job order costing, can you expand on that? What are some examples of times that…

A: Job order Costing : It is a method of costing specific jobs which are performed on the instructions…

Q: Which of the following is false about activity-based costing?   Implementing an activity-based…

A: Activity-Based Costing (ABC): Under activity-based costing the different cost is assigned to a…

Q: Process costing systems are used only by companies that manufacture physical products; companies…

A: Process Costing - Process costing is a method of allocating manufacturing costs to finished goods.…

Q: What is a predetermined overhead rate and explain why many companies use it?   2.  Many…

A: A predetermined overhead rate:-It is an allocation rate that is applied to the estimated cost of…

Q: Which of the following types of companies would be most likely to benefit from activity-based…

A: activity-based costing -   generally, activity-based costing is used to allocate indirect costs or…

Q: Why is the form of activity-based costing unacceptable for external financial reports?

A:

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: 1. Explain the role of activity drivers in assigning costs to products.

A: Hi student Since there are multiple questions, we will answer only first question.

Q: What is the danger in allocating common fixed costs among products or other segments of an…

A: The costs which are not allocated to any specific segment in the business organization are called…

Q: 2. What are the key reasons for product cost differences between simple costing systems and ABC…

A: Financial accounting and cost accounting are two significant branches of accounting. Financial…

Q: When backflush costing is used, managers generally do not use which of the following to keep track…

A: Backflush Costing: Under this system, direct material expenditure incurred in the production…

Q: Which of the following is NOT a problem associated with standard cost accounting? a. Standard…

A:

Q: Is it possible to have under- or overapplied overhead costs in a process costing system? Explain.

A: Process Costing: Process costing is a method of cost accounting, which is used when the production…

Q: Unit-level measures can distort product costing because the dernand for overhead resources nay be…

A: Product cost or expense can be categorised in very manner like we can take product cost like unit…

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: One disadvantage of activity-based costing is that it cannot be used for external reporting. This is…

A: Introduction Activity based Costing (ABC) is a method of assignment of overhead costs to the…

Q: TRUE OR FALSE The last step in activity-based costing system is the selection of cost driver

A: Cost driver is used to compute the overhead rate per cost driver.

Q: Prime Costs

A: Prime Costs is a term used in cost accounting. It is computed while preparing the manufacturing…

Q: TRUE OR FALSE ABC's objective is to trace costs to products or services as directly as possible.

A: Activity-based costing. This is an overhead allocation method in which overhead and Indirect costs…

Q: Preparation of service manual by an electronic manufacturer is an example of A. Unit level activity…

A: In Activity-based costing (ABC) there are mainly four types of activity levels. They are: Unit-level…

Q: 1 Why are top management support and cross-functional involvement crucial when attempting to…

A: Activity based costing is a method of costing that identifies all the activities happening and being…

Q: Which of the following is false when using ABC in a service industry? analyze operations accumulated…

A: ABC (activity-based costing) seems to be an approach for allocating overhead expenses more…

Q: Which of the following statements about activity-based costing is not true? A. activity-based…

A: ABC(Activity Based Costing) is a methodology for more precisely allocating overhead costs by…

Q: What types of costs should not be assigned to products in an activity-based costing system?

A: Activity-based Costing Activity-based costing is a method of costing which identifies the activities…

Q: TRUE OR FALSE In activity-based costing systems, costs are not classified as either direct or…

A: Answer:   In activity-based costing systems, costs are not classified as either direct or indirect…

Q: d in the cost of the product b) that it is not really useful for managerial decisions c) that it…

A: A cost accounting system is a system of accounting that is helpful for the internal management to…

Q: CLEAR MY CHOICE Which of the following statements is false? O a. Volume-based costing has typically…

A: Volume based costing and activity based costing are two type of costing methods that are used for…

Q: One disadvantage of activity-based costing is that it cannot be used for external reporting. This is…

A: ABC or Activity based costing is a technique in which various cost divers are used to calculate the…

Q: Which of the following statements is true? O a. A company can either choose Activity-based costing…

A: Activity-based costing shows the economic cost of the department because it allocates indirect costs…

Q: What are the key reasons for product cost differences between simple costing systems and ABC…

A: Simple costing method is a traditional costing method under which indirect costs are assigned to…

Q: Discuss how traditional methods of allocating overhead to products may not provide a good measure of…

A: The overhead costs are allocated to production using various methods as traditional costing and…

Q: 1. What are the three primary reasons of using a standard cost system? In a business that routinely…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: In activity-based costing, some manufacturing costs may be excluded from product costs TRUE FALSE

A: Lets understand the basics. Activity based costing is as the name suggest allocate cost based on the…

Q: 3) Which of the following statements about activity-based costing is NOT true? A) Activity-based…

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

Q: Which is TRUE about services? a.Services cannot have work-in-process inventories. b.Some services…

A: Please find the answer to the above question below:

Q: Conversion Costs are composed of direct labor and overhead. *   True False Can be true, can be false…

A: Conversation cost: it is the cost incurred to convert raw material into finished goods.…

Q: What is the danger in allocating common fixed costs among product lines or other segmentsof an…

A: Fixed cost: It can be defined as the cost that does not vary with an increase or decrease in the…

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.