Which among the following is not a relevant cost for decision making? a. Cost of producing additional units in case an order is accepted b. Future rent payments c. Depreciation of machinery d. Costs that can be avoided as a result of managerial decisions

Q: What is the rationale behind treating period costs as current expenses? a. Period costs are…

A: Period cost is the cost which is incurred during an accounting year but not directly related to…

Q: When making outsourcing decisions, which of the following is true? a. Expected use of the freed…

A: When making decision on make or buy decision or which are otherwise called as Outsourcing decisions,…

Q: Which of the following is not a true statement about variable costs? O a. Total cost is known to…

A: Variable Cost Variable cost which is described as the cost which are incurred to the business entity…

Q: Which of the following is a limitation of activity-based costing? More cost pools Poorer management…

A: Introduction: ABC costing also called as Activity based costing. According to the consumption cost…

Q: A downside to absorption casting is: A. not including fixed manufacturing overhead in the cost of…

A: Absorption costing demonstrates that all the expenses related to manufacturing a product are…

Q: A by-product is best described as *   a. A product that s produced from materials that would…

A: By product is the product that is manufactured with the primary product but later on separated from…

Q: From the choices presented in parentheses, choose the appropriate termfor completing each of the…

A: Cost accounting is a special branch of accounting in which costs are seen or accounted for.

Q: The following costs arise in relation to production of a new product: (i)   Research and…

A: Lifetime cost of product includes total cost incurred over it's life time from designing,…

Q: Management Accounting) If fixed production costs are not allocated to manufactured products, this…

A: SOLUTION FIXED COST INCLUDES THE RENT OR MORTGAGE PAYMENT YOU PAY FOR YOUR FACTORY AND OFFICE…

Q: The amount of increase or decrease in cost that is expected from a particular course of action as…

A: Discretionary cost: A discretionary expense is a cost that a business or household can survive…

Q: Why is the form of activity-based costing unacceptable for external financial reports?

A:

Q: Comparison between incremental revenues and incremental costs is the decision base for: a.…

A: Incremental revenue and incremental cost concept means where while taking any decision , we wants to…

Q: 7. Which of the following costs should not be included in product costs for internal management…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: A possible disadvantage of the ABC method is: (a) It does not allocate costs to the way production…

A: Definition:   Activity-based method (ABC): The costing method which allocates overheads to the…

Q: There are three categories of costs: fixed costs, variable costs and semi-variable costs. Which of…

A: Semi-variable cost includes both fixed and variable costs. In this, most of the part is fixed but…

Q: In a drop or continue decision, only the variable costs identified with a product are relevant in a…

A: The given statement is true.

Q: In make-or-buy decisions for a part for a product, relevant costs include ________. A) some…

A: Make-or-buy decisions for a part of a product: The company has many options to choose from like…

Q: Which of the following is/ are considered as the uses of standard costing?   Statement 1:…

A: Introduction:- Standard Costing:- The practice of estimating the cost of a production process is…

Q: Which TWO of the following statements about activity-based costing (ABC) are true? a. Implementation…

A: Activity-based costing suitable when: A variety of products are created Overhead accounts for a…

Q: Demonstrate why expressing fixed costs on a per unit of activity basis is misleading and may result…

A: Companies can have two types of costs, fixed costs and variable costs, which together result in…

Q: Which of the following is FALSE regarding Variable Costing? O A. Net income will only change if the…

A: Variable costing is a technique of cost accounting where the fixed overheads are not included in the…

Q: Employee training is an example of discretionary fixed costs. Select one: True False

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Which of the following is a disadvantage of outsourcing? Group of answer choices A. freeing up…

A: A very common outsourcing scenario is the decision of a company to produce a component that is…

Q: When making outsourcing decisions, which of the following is true? The expected use of the freed…

A: Decision making for make or buy a product are otherwise called as Outsourcing decisions, in order to…

Q: In Make or buy decision ,irrelevant costs are :  Select one: a. manufacturing costs that will be…

A: Under make or buy decision, decision needs to taken whether we should manufacture the product or…

Q: d in the cost of the product b) that it is not really useful for managerial decisions c) that it…

A: A cost accounting system is a system of accounting that is helpful for the internal management to…

Q: Wrong allocation of common costs lead to   A. Inaccurate estimation of cost of products or…

A: Common costs are those costs that are incurred for two or more products simultaneously. Common costs…

Q: Which of the following is a false statement about scrap and by-products? Select one: a. Both scrap…

A: Scrap is the incidental residue from material used in production activities that can be recovered…

Q: Which of the following statements is true? (You may select more than one answer.)a. A common cost is…

A: Opportunity cost is the value of the next best alternative over the selected alternative.The loss of…

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: Discuss how traditional methods of allocating overhead to products may not provide a good measure of…

A: The overhead costs are allocated to production using various methods as traditional costing and…

Q: elevant for decision making purposes. Explain ii. Why opportunity cost is measured and relate with…

A: SOLUTION-1 DIFFERENTIAL COSTS OR RELEVANT COST -THEY ARE THE COST THAT IS AFFECTED BY THE DECISION…

Q: Which of the following is FALSE regarding Variable Costing? A. Net income will only change if the…

A: Variable costing is a cost concept in managerial accounting. In Variable costing, all variable costs…

Q: Marginal costing is a technique that distinguishes between variable costs and fixed costs. In this…

A: Cost-volume-profit (CVP) analysis is an important and systematic method that provides useful…

Q: Represent the cost that will be affected by the decision being considered. Margin of Safety…

A: The relevant and irrelevant costs are important in decision making.

Q: Which of the following statements is true? O a. Activity-based costing typically provides less…

A: Volume based costing represents the product costing where factory overhead is allocated to the…

Q: A basic tenet of variable costing is that period costs should be currently expensed. What is the…

A: Variable costs are those costs which changes with change in level of activity. Under variable…

Q: Briefly discuss two methods of reducing the undesirable incentives associated with the use of…

A: Use of absorption costing can lead to undesirable incentives when evaluating the performance of a…

Q: Which item is usually not relevant to a decision by the divisional manager to reduce the transfer…

A: The opportunity cost are relevant cost by the manager to reduce the transfer price to meet a price…

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

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

Q: Why is the form of activity-based costing described in this chapter unacceptable for external…

A:

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

A: