What is a prior service cost?

Q: What does the concept of cost of equipment includes? Describe in detail.

A: Property, plant, and equipment: These assets are long-lived economic resources which are owned by…

Q: What are the Nonmanufacturing costs?

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

Q: Explain the difference between service cost and prior service cost.

A: Service cost: The present value of the investment made by the beneficiary and the employer in the…

Q: Distinguish between discretionary fixed costs and committed fixed costs.

A: Discretionary fixed costs and committed fixed costs: Both costs are considered as fixed costs but…

Q: Which of the following are period costs? *

A: Period costs are also known as period expenses. These are expenses that are incurred during a given…

Q: How much is service cost for the vear?

A: Service cost is the additions to the pension fund during the year for rendering services by the…

Q: What is a cost driver?

A: A cost driver is a concept used in management accounting. The cost of specific business operations…

Q: What is service cost, and what is the basis of its measurement?

A: Service cost: Actuarial present value of benefit attributed by the pension benefit formula to…

Q: What is Cost account payable

A: All variable costs are reduced from sales revenue to get at a contribution margin, from which all…

Q: Do you think it is possible to set standard for delivery of service, which are primarily dictated by…

A: Standards are set for efficient utilization of operation resources and to perform the activity with…

Q: Define the term avoidable cost.

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

Q: Explain service method of allocating prior service cost.

A: Service cost refers to the part of pension expenses deducted every year. Service cost is amortized…

Q: how to do a cost of prodution report

A: The cost of production report is prepared by the following four steps

Q: What costs are assigned to a segment under the contribution approach?

A: Contribution approach is approach used to present income statement in which all the variable costs…

Q: What means of cost

A: Cost denotes the amount of money that a company spends on the creation or production of goods or…

Q: How does an engineered cost differ from a discretionary cost?

A:

Q: What is the difference between prime costs and conversion costs?

A: Prime cost includes direct expenses related to Manufacturing of a goods. Major component of Prime…

Q: Define conversion costs?

A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other…

Q: What does the word "overhead application rate" mean?

A: Overhead is a term that refers to a continuous   The term "overhead application rate" refers to the…

Q: what is inventoriable costs?

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

Q: What is a standard cost? Explain? Give an example?

A: Standard Cost: Standard cost is the benchmark amount of per unit product, per unit input or per unit…

Q: In order to analyze the c-v-p relationship , what types of costs should be classified ? Why?

A: C-V-P relationship means the cost volume and profit relationship. This is usually done to recognize…

Q: What the strategy of types of internal failuer cost?

A: Internal failure costs are those costs that are caused by products or services not conforming to…

Q: What is the cost

A: Cost price is the price incurred by the manufacturer in producing goods and services. It is the…

Q: What does period cost include

A: Period costs are the expenses which are typically related to passage of time and not to any…

Q: Define historical costs.

A: Historical cost principle: This is an accounting principle which states that the actual cost paid in…

Q: Give an example of cost which is a part of unavoidable cost.

A: Unavoidable fixed costs are fixed costs that cannot be avoided by discontinuing a product line or…

Q: Define the term Sponsor's Costs?

A: Sponsorship cost refers to the cost of supporting an event or economic activity for an agent in…

Q: What are “initial direct costs” and how are they accountedfor?

A:

Q: Define the term cost per service.

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

Q: What does indirect cost includes?

A: Indirect costs: The costs, which do not relate directly with the manufacturing of products, are…

Q: What is total cost?

A: The answer is explained as follows:

Q: What is flotation cost?

A: Flotation costs are the costs incurred by a company while issuing new stock.  It includes audit…

Q: Which costs might be included in the initial cost of equipment?

A: Property, plant and equipment:   Property, plant and equipment are the tangible assets which are…

Q: What is recalculated cost?

A: Cost: It implies to the amount that is paid or spent on a specified task or activity. It indicates…

Q: What is absorption costing?

A: Absorption costing  is a cost accounting method to value inventory in an organization. As the term…

Q: Explain the difference between a direct cost and an indirect cost.

A: Direct Cost: A direct cost is a cost that can directly be associated with a particular department or…

Q: What is a characteristic of pay for performance?

A: Pay for performance is a management technique which aims at improving the performance of the…

Q: Distinguish between traceable and common fixed costs.

A: Fixed costs are referred to as the costs that do not change with a change in the level of the…

Q: Why are product costs also called inventoriable costs?

A: Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare the…

Q: What is a relevant cost?

A:

Q: Define Replacement cost.

A: Replacement cost is defined as the measure of cash required to change the current resource with a…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.