Which costing method tends to overstate the cost of high-volume products? a. Traditional volume-based costing b. Activity-based costing c. Job order costing d. Differential costing

Q: If the Activity-Based Costing (ABC) method's main intention is to find a possibility to cut the…

A: ABC (Activity based costing) framework was created to manage the drawbacks of customary costing…

Q: Under marginal (Variable) costing system, which of the following cost items is NOT considered in…

A: Answer: c) Advertising expenditure

Q: Which of the following is not relevant is not relevant in determining weighted average unit cost in…

A: Equivalent unit of production in beginning inventory is irrelevant because the total beginning…

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: in intended application between sales life-cycle analysis and life-cycle costing

A: The strategic pricing depends on the product price which it supported the worth it charges to the…

Q: Which of the following is NOT true?   Multiple Choice   Activity-based costing allocates some…

A: Activity based costing allocates the overhead costs to different cost drivers on the basis of…

Q: Briefly explain two factors that tend to result in product cost distortion under traditional,…

A: Traditional volume based product costing system is a costing system in which total factory overheads…

Q: What system would a manufacturer of unique special orders or batch processes most likely use to…

A: Cost accounting is very important area of accounting, which helps in accounting of various types and…

Q: Are selling and administrative expenses treated as product costs or as period costs under variable…

A: Selling and administrative expenses:   These expenses incurred by the company does not relate to the…

Q: If fixed manufacturing overhead costs are released from inventory under absorption costing, what…

A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…

Q: Which of the following statements is true of activity-based costing? O a. Activities are the cost…

A: Activity based costing is a type of costing system in which all indirect costs or overhead costs are…

Q: Which statement is FALSE? Activity-Based Costing includes non-manufacturing costs in product costs,…

A: Job order costing is applicable especially for a company producing identifiable separate distinct…

Q: Explain why a costing system that uses a volume-based rate is likely to produce distorted…

A: A traditional volume-based cost allocation systems that use only drivers tend to vary directly with…

Q: Which of the following statements about activity-based costing is not true? A. activity-based…

A: Activity-based costing can be defined as the method of assigning and allocating the overhead and…

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: Which of the following factors is NOT considered to have influenced the development of…

A: Activity-based costing is a method to allocate the overhead and indirect cost to products and…

Q: If fixed manufacturing overhead costs are released from inventory under absorption costing, whatdoes…

A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…

Q: Why do overhead costs often shift from high-volume products to low-volume products when acompany…

A: Activity Based Costing: It's focus is on activities as the fundamental cost objects. It uses…

Q: Which of following is not correct about normal costing? Select one: O a. Product cost includes the…

A: Option a (Product cost includes the applied indirect manufacturing cost) is not correct about normal…

Q: How do the cost flows in backflush costing systems differ from those in traditional costing systems?

A:

Q: Consider the following statements regarding traditional costing system: I – Overhead costs are…

A: Introduction  Traditional costing system may be defined as that type of costing system in which…

Q: What is meant by customer profitability analysis as it relates to activity based costing? Give an…

A: In determining the profitability of customer relationships through customer profitability analysis…

Q: Which of the following statements about activity-based costing is not true? A. activity-based…

A: ABC(Activity Based Costing) is a methodology for more precisely allocating overhead costs by…

Q: Explain how the analysis of fixed manufacturing overhead costs differs for (a) planning and control…

A: Fixed Cost:The cost which does not fluctuate on the basis of the output level produced. It remains…

Q: Which of the following statements is true of activity-based costing? O a. ABC ignores the allocation…

A: Activity based costing represents the costing method where the company identifies the cost pools and…

Q: The difference between marginal costing and absorption costing net income centres on how to account…

A: Absorption costing means that inventory is valued at total manufacturing cost including fixed…

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: 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: Why would a company choose to use activity based costing vs the single department method or the…

A: Activity-based costing: Activity-based costing is commonly known as ABC. It is a costing method that…

Q: 1. If management wants the most accurate product cost, which of the following costing methods should…

A: Costing method refers to the way of calculating the total cost of a final product. It is a tool in…

Q: Variable costing is concerned with the variable costs and includes direct material, direct labor,…

A: There are different approaches to find net income such as variable costing, absorption costing and…

Q: If fixed manufacturing overhead costs are released from inventory under absorption costing, what…

A: Overhead Costs: Overhead costs are business expenses that cannot be associated or traced directly…

Q: Which of the following is NOT a reason for companies to assign costs to products or services? O to…

A: Generally companies will asign costs to products and services for decision making purpose

Q: Which of following is not correct about normal costing? Select one: a. Predetermined rate is used to…

A: Normal Costing used actual data in order to calculate the cost of the product. This costing drives…

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: Do companies in either the service sector or the merchandising sector make choices about absorption…

A: Variable Costing:The variable costing is a method used to allocate the fixed manufacturing overhead…

Q: Explain the difference between variable costing and absorption costing income statements. Provide a…

A: Difference Between Variable Costing and absorption costing income statements. Under Variable…

Q: When activity-based costing is used, why do manufacturing overhead costs often shift from…

A:

Q: Which of the following statements are true? I.   Activity-based costing differs from traditional…

A: Activity-based costing (ABC) allocates costs to activities rather than to goods or services. This…

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: Which of the following statement is false?         Multiple Choice   Fixed manufacturing overhead…

A: Under the absorption costing method, the fixed manufacturing overhead is allocated to units produced…

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.