what is the difference in unit costs?
Q: What are transferred in costs? When do they occur?
A: Transferred in costs: Cost that is assigned to partially completed products that have been finished…
Q: What is Unit-Profit or Unit-Cost Calculation?
A: Cost: It is the economic value of resources incurred by a firm to manufacture a product or render…
Q: what is variable cost per unit?
A: Variable Cost = Cost which changes with change in units. Variable Cost Per unit = It is Variable…
Q: What is the difference between product costs and period costs?
A: Step 1 Costs incurred for the production of goods is referred to as product cost. Direct materials,…
Q: what are the differences between the FIFO, LIFO, and the average cost?
A: Inventory: It refers to the items held by an organization which were in various forms like raw…
Q: How do step-wise costs and curvilinear costs differ?
A: There are different types of costs such as variable costs, fixed costs, step costs, and curvilinear…
Q: What is the variable cost per unit produced?
A: Variable costs are those costs which changes directly with change in level of activity. For example,…
Q: What is the purpose for determining the cost per equivalent unit?
A: Equivalent units of production are applied to the work-in process inventory at the end of an…
Q: define direct material costs?
A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other…
Q: How to find the unit cost
A: Meaning A unit cost is a total expenditure incurred by a company to produce, store, and sell one…
Q: How does an engineered cost differ from a discretionary cost?
A:
Q: What does it mean to externalize costs?
A: Externalizing costs means generating profits by reducing the indirect costs by imposing them on…
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 direct manufacturing-labor costs?
A: Cost: It refers to the economic value incurred by a company to produce a product or deliver a…
Q: What two assumptions are frequently made when estimating a cost function?
A: Cost Function:Cost function represents the basic change that occurs in the total cost due to the…
Q: Define unit costs.
A: Unit cost is the cost incurred by the company in the production, storage and selling of one unit of…
Q: Cost per unit for material?
A: Weighted average method is one of the method of process costing. Under this method, equivalent units…
Q: What is variable costing?
A: Variable Costing: “Variable costing is a method that allocates only variable manufacturing costs to…
Q: Is labor a true variable cost?
A: Direct labor cost is the cost involved in payment of wages to the laborers who are involved in…
Q: Briefly define total cost and marginal cost.
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: What are the prime costs? Conversion costs?
A: Prime cost: Prime cost includes cost which are related to direcly production of Finished goods. This…
Q: What is cost approach measurement?
A: A process that involves finding out the economic value or the fair value of a business entity refers…
Q: What is cost management?
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: Why is it essential to determine unit costs or profits?
A: Determining unit cost means to find out total cost incurred on a particular unit It is determined by…
Q: What is the difference between joint costs and common costs?
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Describe the difference between prime costs and conversion costs?
A: Solution:- Difference between prime costs and conversion costs as follows under:-
Q: Whats the difference between prime and conversion costs?
A: Prime cost: It is the cost which is incurred for manufacturing a product. It includes direct…
Q: What is total cost?
A: The answer is explained as follows:
Q: What is product costs? Give an example?
A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other…
Q: How is conversion costs per equivalent unit calculated?
A: The cost per unit is calculated as total cost divided by number of units.
Q: What is the definition of a cost object?
A: This question explains about the cost object.
Q: What is cost hierarchy?
A: Cost: Cost can be defined as the cash and cash equivalent which is incurred against the products…
Q: What is operation costing?
A:
Q: How is the cost per equivalent unit of production calculated?
A:
Q: How do period costs differ from product costs?
A:
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: a. What was Product Z’s unit cost under absorption costing? b. What was Product Z’s unit cost under…
A: Absorption costing and Variable costing are two types of costing methods that are being used in the…
Q: What Is Total Cost Reporting?
A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…
Q: etween labor costs and profit per unit?
A: All expenditures spent by an employer as a result of the employment of labor are referred to as…
Q: Why are fixed-overhead costs sometimes called capacity-producing costs?
A: Overhead costs Overhead cost or overhead expenses refer to the cost which is used to increase the…
Q: Min z? reglar unit cost? and suber unit cost?
A: Type A Type B Unit cost Regular fuel 2 units 2 units 1$ Super fuel 2 units 4 units 2$ New…
Q: Define direct material costs with an example?
A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other…
Q: What are the different purposes for which we measure product costs?
A: Product cost: Product cost is the cost incurred to manufacture a product, it includes the material…
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- Suppose that Demont has been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help it finance its growth. The bank requires financial statements before approving such a loan. Classify each cost listed below as either product costs or period costs for the purpose of preparing the financial statements for the bank. Costs Product Cost/Period Cost 1. Depreciated on salesperson's cars 2. Rent on equipment used in the factory 3. Lubricants used for machine maintenance 4. Salaries of personnel who work in the finished goods warehouse 5. Soap and paper towels used by factory workers at the end of a shiftSuppose that you have been given a summer job as an intern at Issac Aircams, a company that manufacturessophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which isprivately owned, has approached a bank for a loan to help it finance its growth. The bank requires financialstatements before approving such a loan. You have been asked to help prepare the financial statements andwere given the following list of costs:1. Depreciation on salespersons’ cars.2. Rent on equipment used in the factory.3. Lubricants used for machine maintenance.4. Salaries of personnel who work in the finished goods warehouse.5. Soap and paper towels used by factory workers at the end of a shift.6. Factory supervisors’ salaries.7. Heat, water, and power consumed in the factory.8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.)9. Advertising costs.10. Workers’ compensation insurance for factory employees.11. Depreciation on chairs…Suppose that you have been given a summer job as an intern at Issac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance itsgrowth. The bank requires financial statements before approving the loan.Required:Classify each cost listed below as either a product cost or a period cost for the purpose of preparing financial statements for the bank.1. Depreciation on salespersons’ cars.2. Rent on equipment used in the factory.3. Lubricants used for machine maintenance.4. Salaries of personnel who work in the finished goods warehouse.5. Soap and paper towels used by factory workers at the end of a shift.6. Factory supervisors’ salaries.7. Heat, water, and power consumed in the factory.8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.)9. Advertising costs.10. Workers’ compensation insurance for factory…
- W bought a new printing machine from abroad. The cost of the machine was $80,000. The installation costs were $5,000 and the employees received specific training on how to use this particular machine, at a cost of $2,000. Before using the machine to print customers' orders, a test was undertaken and the paper and ink cost $1,000. What should be the cost of the machine in the company's statement of financial position?Suppose that Demont has been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help it finance its growth. The bank requires financial statements before approving such a loan. Classify each cost listed below as either product costs or period costs for the purpose of preparing the financial statements for the bank. Cost Product Cost/Period Cost 1. Factory supervisors' salaries 2. Heat, water, and power consumed in the factory 3. Materials used for boxing products for shipment overseas. Units are normally boxed. 4. Advertising costs 5. Workers' compensation insurance for factory employeeW bought a new printing machine. The cost of the machine was $80,000. The installation costs were $5,000 and the employees received training on how to use the machine, at a cost of $2,000. Before using the machine to print customers' orders, a test was undertaken and the paper and ink cost $1,000. What should be the cost of the machine in the company's statement of financial position?
- Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company’s costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.60 Electricity $ 1,200 $ 0.07 Maintenance $ 0.15 Wages and salaries $ 4,700 $ 0.40 Depreciation $ 8,500 Rent $ 2,000 Administrative expenses $ 1,700 $ 0.04 For example, electricity costs should be $1,200 per month plus $0.07 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.20 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,600 Revenue $ 54,800 Expenses: Cleaning supplies 5,600 Electricity 1,765 Maintenance 1,515 Wages and salaries 8,460 Depreciation 8,500 Rent 2,200 Administrative expenses 1,940 Total expenses 29,980 Net operating income $…SWA company is trying find costs of its products. Which of the following statements is true? A cost is: a. Always an expense. b. Always an asset. c. Something quite different from either an expense or an asset. d. Can be either an expense or an asset. e. Always a liability. MS Harius is an accounting in Lata company; the company has leased a copying machine on a monthly basis which is on a fixed fee each month in addition to a charge per copy. Technical made 2,400 copies and paid a total of $162 in rent in September and in October they paid $195 for 3,500 copies Determine the total amount that would be paid for 1,800 copies. a. Some other amount not listed here b. $138 c. $144 d. $160 e. $163Suppose that you have been given a summer job as an intern at Issac Aircams, a company that man- ufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help it finance its growth. The bank requires financial statements before approving such a loan. You have been asked to help prepare the financial statements and were given the following list of costs: Depreciation on salespersons’ cars. Rent on equipment used in the factory. Lubricants used for machine maintenance. Salaries of personnel who work in the finished goods warehouse. Soap and paper towels used by factory workers at the end of a shift. Factory supervisors’ salaries. Heat, water, and power consumed in the factory. Materials used for boxing products for shipment overseas. (Units are not normally boxed.) Advertising costs. Workers’ compensation insurance for factory employees. Depreciation on…
- A large auto manufacturer sells large fleets of vehicles to auto rental companies, such as Budget and Hertz. Suppose Budget is negotiating with the auto manufacturer to purchase 1,000 vehicles. Fill in the short paragraph to explain to the auto manufacturer when the company should, and should not, record this sales revenue and the related expense for cost of goods sold. Mention the accounting principles that provide the basis for your explanation. Let's decide how and when the manufacturer should recognize revenue. The manufacturer should record sales revenue when the revenue is (collected ,deferred, earned) by (agreeing to deliver, delivering, never delivering) automobiles to the auto rental companies. The manufacturer should not record any revenue (after, during, prior to) delivery of the vehicles to the auto rental companies because it hasn't (collected, deferred, earned)the revenue yet. The (expense recognition principle, historical cost principle, revenue principle)…A large auto manufacturer sells large fleets of vehicles to auto rental companies, such as Budget and Hertz. Suppose Budget is negotiating with the auto manufacturer to purchase 1,000 vehicles. Fill in the short paragraph to explain to the auto manufacturer when the company should, and should not, record this sales revenue and the related expense for cost of goods sold. Mention the accounting principles that provide the basis for your explanation. Let's decide how and when the manufacturer should recognize revenue. The manufacturer should record sales revenue when the revenue is earnedby delivering automobiles to the auto rental companies. The manufacturer should not record any revenue prior to delivery of the vehicles to the auto rental companies because it hasn't earned the revenue yet. The revenue principle governs this decision. Now let's decide how and when the manufacturer should record the cost of the sale. The manufacturer should record the cost of…Ethan Manufacturing Incorporated produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours: Month Maintenance Costs Machine Hours 1 $ 2,780 1,870 2 2,940 1,950 3 3,090 2,030 4 3,200 2,050 5 3,280 2,080 6 3,250 2,060 7 3,190 2,040 8 3,030 2,020 9 2,800 1,880 10 2,400 1,280 11 2,410 1,480 12 2,630 1,770 Required: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1.