Question
Asked Feb 11, 2020
1 views

Two positions have normally been taken with respect to the recording of fixed manufacturing overhead as an ­element of the cost of plant assets constructed by a company for its own use:

a.    It should be excluded completely.

b.    It should be included at the same rate as is charged to normal operations.

What are the circumstances or rationale that support or deny the ­application of these methods?

 

check_circle

Expert Answer

Step 1

Fixed manufacturing overheads: The cost which is incurred on the manufacturing of the product irrespective of the number of units produced is te...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: What are the normal balances of the various sales-related accounts?

A:  

question_answer

Q: What are the two main characteristics of intangible assets?

A: Intangible assets: These are the long-term assets which are not physical in nature, but possess valu...

question_answer

Q: Discuss the basic accounting problem that arises in handling each of the following situations. a.   ...

A: Click to see the answer

question_answer

Q: Evers Industries has a past history of uncollectible accounts, as follows. Age Class Percent ...

A: Aging of Accounts Receivable method: It is one of the methods of estimating bad debts, in which it c...

question_answer

Q: In 2019 Hill Corporation reported a net operating loss of $13,200 that it carried forward to 2020. I...

A:  

question_answer

Q: Chapter 4 Pg. 318 Facility, Product, Batch and Unit Levels. Would you please explain and give exampl...

A: Click to see the answer

question_answer

Q: On March 4, Micro Sales makes $10,500 in sales on bank credit cards that charge a 3% service charge ...

A: Journal: It is the systematic record of a financial transaction recorded in a chronological order.

question_answer

Q: On February 1, 2021, one of the huge storage tanks of Viking Manufacturing exploded. Windows in hous...

A: What are contingent losses:  According to accounting standard 4 which deals with contingent losses a...

question_answer

Q: The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, 2018, i...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...