When using the total cost concept of applying the cost-plus approach to product pricing, what is included in the markup?                         Total costs plus desired profit Desired profit Total selling and administrative expenses plus desired profit Total fixed manufacturing costs, total fixed selling and administrative expenses, and desired profit

Q: variable

A: Performance evaluation based on income could be best achieved by using variable costing method in…

Q: When pricing products and using cost-plus pricing, which type of cost is perceived to be the safest…

A: In absorption costing , fixed manufacturing overhead will be included in stock valuation where as in…

Q: When should a company use absorption costing when setting sales prices? When should it use variable…

A: Variable Costing: "Variable costing is a method that allocates only variable manufacturing costs to…

Q: TRUE OR FALSE The use of absorption costing facilitates contribution margin approach in preparing…

A: Performa of income statement under absorption costing Particulars  Amount Sales  - Less :…

Q: State the uses of Marginal Costing technique in decision making process. How CVP( cost volume…

A: CVP refers to cost volume profit analysis. It is calculated to find out the break-even

Q: What modifications are made to the cost classification of product costs in estimating service costs?

A: Cost classification refers to the separation of various expenses into different categories. It is…

Q: Cost classifications used for predicting cost behavior include: Multiple Choice Variable cost and…

A: Variable costs are the costs that varies with the change in output but per unit variable cost…

Q: How do you prepare an absorption and variable costing income statement show a draft or format only.

A: An income statement is prepared by the organization to measure the revenues generated during the…

Q: Calculation of profit change from changes in sales price, sales volume, variable costs, or fixed…

A: This question deals with profit change from changes in sales price, sales volume, variable costs, or…

Q: Sort the following contribution margin income statement line items in the correct order from top…

A: Operating income is calculated after deducting the variable costs and fixed costs from the total…

Q: Identify each of the following costs as either a product cost (PROD) or a period cost (PER). Sales…

A: Concept Introduction:   Product costs are the costs which are incurred only when a product is…

Q: d. Explain why there is or is not a difference in the net income amounts in the two income…

A: Absorption costing and variable costing are two costing methods under which the major difference…

Q: How cost accounting covers the problem of price assessment

A: Cost Accounting Cost accounting is also a form of group action accounting that aims to capture a…

Q: ow do I prepare an income statement based on variable co

A: In managerial accounting, variable costing is a cost concept. During the creation of a product…

Q: The gross-margin format is used for A. mixed costing income statement B. absorption costing income…

A: Gross  Margin In simple term gross margin is deduct the amount from the total revenue to cost of…

Q: When standard costs are used in applying the cost-plus approach to product pricing, the standards…

A: False No, the standards should not be based upon normal levels of performance.

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

A: Pricing a product is considered as one of the marketing strategy.

Q: Cost-volume-profit analysis (CVP Analysis) requires management to classify all costs as either…

A: Cost volume profit analysis (CVP Analysis) helps the business entity in determining the impact on…

Q: Determine the total amount of product costs. LA Product costs $

A: Introduction: Manufacturing over heads: Manufacturing overhead  means "sum of all the indirect costs…

Q: What are these equations? c.Under absorption costing, what is the cost of goods sold? d.Under…

A: Hey, since there are multiple subparts posted, we will answer the first three subparts. If you want…

Q: Sort the following contribution margin income statement line items in the correct order from top…

A: In a Contribution Margin Income Statement, the variable cost are reduced from sales revenue to get…

Q: Cost classifications used for preparing financial statements Include: Multiple Choice Product cost…

A: Answer : Concept :  Product cost is the cost that can be directly associated with the product and…

Q: What is the high-low method used to estimate? a. variable costs and production capacity b. total…

A: The high-low method is a method using which the variable cost per unit and total fixed cost is…

Q: Discuss the different situations for when Traditional Absorption Costing and Relevant costing would…

A: The traditional absorption costing is useful to estimate the cost of production that include direct…

Q: Which one of the following is another name for product costs? Select one: a. Direct costs b. Period…

A: Product cost means the cost of producing one unit of finished goods.

Q: What is the difference of price and cost? From (a) point of view of a customer; and (b) point of…

A: For businesses, the term "cost" refers to the expenditure associated with producing a something or…

Q: Marginal Costing refers to product costing methods that exclude ________ from product costs a)…

A: Using marginal costing, only variable costs are included in product cost.

Q: How do you figure out the inventory on the Variable costing income statement?

A: The Income Statement is prepared by various methods one them is Variable Costing.

Q: The “plus” in cost-plus pricing is often referred to as Markup.   Extra profit.   Gross profit.…

A: Cost plus pricing means when selling price is fixed as a addition of profit on the cost price. For…

Q: Explain single product cost-volume-profit (CVP) and break-even analysis. Provide a hypothetical…

A: COST - VOLUME - PROFIT (CVP)  ANALYSIS CVP analysis looks at the effect of sales volume variations…

Q: Describe income statement under variable costing.

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: How to prepare income statement using absorption costing?

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

Q: Which type of income statements, Contribution Format or Traditional Format should be used to…

A: Contribution Format income statemnets should be used to identify relevant costs. A traditional…

Q: h of the following is the format of the income statement that is MOST useful in decision-making?…

A: Solution: For the purpose of decision making, we need to have comparison of relevant revenues and…

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: Give the general formula for a mixed cost.  What does each term represent?

A: Given: The general formula for the mixed cost is given.

Q: Manufacturers have established a cost classification called product costs. Define the term "product…

A: Product costs - These are the costs incurred to manufacture an item. Costs incurred to manufacture a…

Q: . Assume the company uses absorption costing. Determine its product cost per unit.

A: In order to obtain the product cost under absorption costing, first the per-unit costs are added…

Q: What does the target full product cost include?

A: Definition:   Target full product cost: The target cost is the maximum cost of a product that can…

Q: Product and period cost according to absorption costing and Variable costing with examples ?

A: Absorption costing is a method where all the cost related to the manufacturing process is considered…