What are three factors causing reductions in the cost to place purchase orders for materials?

Q: What type of cost drivers do modern costing systems use and how does it differ from the cost drivers…

A: Cost Driver Business activities are  influenced by a cost driver . Cost drivers are the factors…

Q: Which of the following is an example of a cost item that should be classified as an internal failure…

A: This question deals with the cost of quality or quality cost. Cost of quality means a cost which is…

Q: Which of the following cost is included in cost of goods sold? customer service cost manufacturing…

A: In layman's language, the Cost of goods sold is nothing but the total cost incurred to produce a…

Q: Describe three different purposes for computing product costs?

A: Product cost is the cost incurred to manufacture a product, it includes the material cost, labor…

Q: Why are support department costs difficult to apply to products?

A: Given: The difficulty in applying the support department costs on products.

Q: What is the basic difference between absorption costing and variable costing?   What are the…

A: Product costs are those kinds of costs which is related to the procedure of production directly like…

Q: Which of the following is an example of an indirect cost? Multiple Choice Cost of labor Cost of…

A: Indirect Cost are expenses other than direct expenses are known as indirect  expenses. These cannot…

Q: Why costing procedure is different for spoiled or defective material?

A: Spoilage means loss occurred during the production. It occurs due to sub-standard material,…

Q: What is the relationship between total carrying cost and totalordering cost at the EOQ?

A: It indicates an inverse relationship between the cost of ordering and the cost of holding at…

Q: manufacturing cost and non-manufacturing cost, provide an example of each type.

A: COST is a measurement in monetary terms of the amount of resources used for the purpose of…

Q: What are the major limitations of activity-based costing?

A:

Q: How is activity-based costing useful for pricing decisions?

A: Pricing Decisions:Pricing decisions are those decisions that are related to ascertain the price of a…

Q: Which of the following would be an acceptable measure of activity for a material handling activity…

A: For a material handling activity cost pool, number of material moves and weight of materials moved…

Q: Which of the following would not be a period cost? Group of answer choices Research and development…

A: Solution: Period cost is the cost that is expensed in the income statement and same is not…

Q: Explain how variable costing system costing is used to calculate the cost of goods manufactured.…

A: (1)  Variable costing system The variable costs are included in the product cost in variable…

Q: What are ordering costs? What are setup costs? What are carrying costs? Provide examples of each…

A: Cost is the amount incurred on buying an item of getting a job done. There are various types of cost…

Q: Under full absorption costing, which of the following are included in product costs? Only variable…

A: The absorption costing system is also known as the full costing system. It is allowed to be used by…

Q: What are the three major ways in which activity-based costing improves the accuracy ofproduct costs?

A: Activity based costing is a system in which costs are allocated to the products on the basis of…

Q: What are the two approaches that can be used to adjust for flotation costs?

A: The cost which is arises while issue new stock or shares in the market is commonly known as floating…

Q: Why cant prime cost be added to conversion cost to get total product cost?

A: Product Costs: Product costs are the costs that are incurred to produce a product or providing a…

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: Which one of the following are NOT period costs? a)  Advertising costs. b)  Indirect materials.…

A: Product cost are the costs that are directly or indirectly related to production. Direct Costs…

Q: Under absorption costing, which of the following costs would not be included in finished goods…

A: Introduction: Absorption costing, often known as "full absorption costing" or "full costing," is an…

Q: Cost and Costing, as well as the importance of calculating costs in product management, may be…

A: Cost refers to the value of money that has been used to produce or manufacture something. It can…

Q: Three key cost components that is necessary to produce finished goods?

A: generally, to convert raw materials into finished goods there will be many processes involved and…

Q: re the difference between traditional product costs and activity-based product

A: Traditional product costs: The traditional method of allocating product costs is to allocate the…

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: What kinds of challenges occurs in the Cost Control and Cost Reduction in the Manufacturing…

A: Cost Control is different from cost reduction Cost Control focuses/emphasises on decreasing the…

Q: How much fixed overhead cost is included in ending finished goods inventory under absorption…

A: Absorption costing considers the fixed overhead costs for production as per the units sold and not…

Q: carrying cost?

A: Which one of the following is a carrying cost Correct answer :-  Cost of obsolescence.

Q: How do fixed costs create difficulties in costing units of product

A: Fixed costs are the costs that do not tend to fluctuate with change in production levels in the…

Q: Do the engineering decisions account for the majority of product costs?

A: Yes, engineering decisions will account for the majority of the cost of the product. The main task…

Q: How do current cost management techniques vary from earlier ones in terms of life cycle costing and…

A: Life cycle cost which traces the costs and revenues over a period of life of product.  Life cycle…

Q: Prime cost is? A)Group of answer choices B)indirect materials cost and direct labor cost.…

A: Prime cost refers to the cost related to direct labour and direct material  For example in the…

Q: Why is the cost per equivalent unit often determined separately for direct materials and conversion…

A: Process costs: It is a method of cost accounting, which is used where the production is continuous,…

Q: a) Compute contribution margin per pound of material for each product. (b) If demand is limited,…

A: Contribution Margin per Limited resource Contribution margin per unit of limited resource is…

Q: Describe different types of cost behavior in relation to production and sales volume.

A: Introduction: Cost behavior: Cost behavior refers to the indicator that reflects the information…

Q: uantity order to reduce the overall cost is usually stated as EOQ. why it is related to one time…

A: Step 1   Economic order quantity (EOQ) is the ideal order quantity a company should purchase to…

Q: Which of the following material issue pricin method considers the prices as well as the quantities…

A: Solution: "Weighted average method" considers the prices as well as the quantities of materials…

Q: What are the two main inventory methods used in process costing? What are the differences between…

A:

Q: Which of the following correctly describes the term cost driver? a. The inflation rate which causes…

A: Cost driver are the compotents that are directly related to the product that determine the cost of…

Q: What are the pros/cons of product costing allocation methods and how they influence distortion of…

A: Product costing allocation methods are used to assign or allocate a cost to manufactured/produced…

Q: When pricing a product or service, managers must consider which of the following? a. Only period…

A: