Which method of process costing is almost always used in practice? Multiple Choice a) Weighted average method b) LIFO method c) Straight-line method d) Accelerated method e) None of these answers is correct.

Which method of process costing is almost always used in practice? Multiple Choice a) Weighted average method b) LIFO method c) Straight-line method d) Accelerated method e) None of these answers is correct.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 9MC: Which is not a step In activity-based costing? A. identify the activities performed by the...

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Question

Which method of process costing is almost always used in practice?
Multiple Choice
a) Weighted average method
b) LIFO method
c) Straight-line method
d) Accelerated method
e) None of these answers is correct.

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Process costing works well whenever a. heterogeneous products pass through a series of processes and receive different doses of materials, labor, and overhead. b. material cost is accumulated by process and conversion cost is accumulated by process. c. homogeneous products pass through a series of processes and receive similar doses of conversion inputs and different doses of material inputs. d. homogeneous products pass through a series of processes and receive similar amounts of materials, labor, and overhead. e. None of these.
Happy Trails has this information for its manufacturing: Â Its income statement under absorption costing is: Prepare an income statement with variable costing and a reconciliation statement between both methods.
Trail Outfitters has this information for its manufacturing: Its income statement under absorption costing is as follows: Prepare an income statement with variable costing and a reconciliation statement between both methods.
Which is not a task typically associated with ABC systems? A. calculating the overhead application rate for each cost pool B. applying a single cost rate C. identifying a cost driver D. more correctly allocating overhead costs
Which is not a step In activity-based costing? A. identify the activities performed by the organization B. identify the cost driver(s) associated with each activity C. compute a cost rate per production D. assign costs to products by multiplying the cost driver rate by the volume of the cost driver units consumed by the product
Which of the following is NOT true? Multiple Choice Activity-based costing allocates some period costs to products Activity-based and traditional costing both allocate direct materials and direct Activity-based does not allocate all manufacturing costs to products Activity-based costing can be used for both internal and external reporting.
Which of the following statements regarding activity-based costing (ABC) is NOT correct? a. Under ABC cost centres are replaced by cost pools b. Blanket overhead recovery rates (OAR) are replaced with cost driver rates c. ABC uses one common overhead recovery rate, such as labour hours. d. ABC tackles the problems of absorption costing by adopting a much more accurate way of charging overhead to cost units.
Which of the following best defines standard costing? a. It is the same as actual costing but done in real time. b. It is a system that allocates overhead costs on the basis of standard overhead rates times the actual quantities of the allocation base used. c. It is a system that traces direct costs to output produced by multiplying the standard prices or rates by the standard quantities of inputs allowed for the actual output produced. d. It is a system that traces direct cost to output by multiplying actual prices or rates by actual quantities of inputs and allocates overhead costs on the basis of actual quantities of the allocation base used.
Which of the following is NOT a difference between traditional and activity based costing systems? Multiple Choice Activity based costing using numerous predetermined overhead rates while traditional uses only one. The way they assign direct materials and direct labor to products. Activity based costing may not assign all product costs to units if they are not directly tied to an activity Activity based costing assigns product and period costs to units.
The average and FIFO process costing methods differ in that the average method: a. Can be used under any cost flow assumption. b. Does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production. c. Is much more difficult to apply than the FIFO method. D. Considers the ending work in process inventory only partially complete.
Which of the following statements is false? (You may select more than one answer.)a. Activity-based costing systems usually shift costs from low-volume products tohigh-volume products.b. Benchmarking can be used to identify activities with the greatest potential forimprovement.c. Activity-based costing is most valuable to companies that manufacture products thatare similar in terms of their volume of production, batch size, and complexity.d. Activity-based costing systems are based on the assumption that the costs included ineach activity cost pool are strictly proportional to the cost pool’s activity measure.
Please explain the answer thoroughly. Is this statement "if all the allocation base in the predetermined overhead rate does not drive overhead costs, it will nevertheless provide reasonably accurate unit product costs because of the averaging process." same as this "If the allocation base does not drive the cost of overhead, overhead cost averaging will yield reasonably accurate unit product costs."? If yes, please let me know if it a true or false with a detailed explanation.