Which of the following are true regarding activity-basedcosting? a. A primary goal of using ABC is a more useful alloca-tion of manufacturing overhead to product lines. b. Under ABC, direct labor hours are never used to allo-cate overhead costs to activity pools or product lines. c. The use of ABC is indicated when it is suspected thateach of a firm’s product lines consumes approximatelythe same amount of overhead resources but the current allocation scheme assigns each line a substantially dif-ferent amount.

Q: When production departments differ significantly in their manufacturing processes, factory overhead…

A: The factory overhead costs are usually allocated between different products or departments using the…

Q: Activity-based costing uses departments overhead rate to assign overhead .a O provides the same…

A: Activity based costing system is a costing system which says that all indirect costs or overheads…

Q: Assigning manufacturing overhead to a specific job is complicated by all of the below except: A)…

A: Manufacturing overhead is a indirect cost incurred during the production process. This overhead is…

Q: a. TRADITIONAL - What is traditional cost allocation for manufacturing overhead? Give an example of…

A: For ascertaining the accurate product cost or total production cost of the manufacturing…

Q: In a manufacturing company using absorption costing, the fixed costs associated with idle production…

A: The question is related to the Absorption costing.

Q: se explain the answer thoroughly.  Is this statement "if all the allocation base in the…

A: Allocation base in the predetermined overhead rate is the percentage of overhead which will be…

Q: umerous predetermined overhead rates while traditional uses only one.   The way they assign direct…

A: Correct answer is    Activity based costing may not assign all product costs to units if they are…

Q: If the activities causing overhead costs are different across different departments and products,…

A: Answer: True

Q: Under variable costing, fixed manufacturing overhead is expensed at the time the units are produced.…

A: There are two costing system followed by the organization. (1) Variable costing method (2)…

Q: Explain how a plantwide overhead rate, using a unit-based driver, can produce distorted product…

A: The plantwide overhead rate is a standard overhead rate used by a corporation to distribute all…

Q: Which of the following statements is true Activity based costing can only be used in manufacturing…

A: Activity based costing system is a costing system which allocates or divides cost between various…

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: Under-allocated manufacturing overhead costs are always the result of which of the following…

A: Under Allocated manufacturing overhead occurs when Applied overhead are less than the actual…

Q: Under-applied manufacturing overhead costs are always the result of which of the following…

A: Actual overhead is the actual expense incurred related to the overhead during the period whereas…

Q: ?Which of the following statements is not correct concerning multiple overhead rate systems None of…

A: Option  a is the answer.

Q: Please explain thoroughly with examples. Which statement(s) is True/False and why? If none are true,…

A: Cost accounting is the method which followed by a manufacturing business in order to estimate the…

Q: When a company shifts from a traditional cost system in which manufacturing overhead is applied…

A: Traditional costing system says that all indirect costs (overheads) related to products should be…

Q: Which of the following statements is not correct concerning multiple ?overhead rate systems A…

A: The multiple overhead rate system is the one where different departments have their own rates of…

Q: Which of the following statements about using a plantwide overhead rate based on direct labor is…

A: Plantwide overhead rate based on direct labour means overhead rate to be calculated which is based…

Q: Which of the following Overhead cost of a company is likely to have the least control a. Machine…

A: The overhead cost includes total indirect costs incurred in the production process.  It includes…

Q: “Abnormal rework costs should be charged to a loss account, not to manufacturing overhead.”Do you…

A: Rework:Rework is that type of product that is not satisfy the ultimate needs of the consumer but by…

Q: Which of the following statements is false? (You may select more than one answer.)a. Absorption…

A: The third (C) statement is false.

Q: In deciding whether to manufacture a part or buy it from an outside vendor, a cost that is…

A: The question is related to make or buy the product from outside. The relevant cost is Variable cost…

Q: When applied by service companies, the use of the single and multiple department overhead rate…

A: The correct answer is “False.”

Q: Which one of the following is not correct regarding the predetermined ?overhead rate .None of the…

A: The rate of predetermined overhead is used to apply the estimated manufacturing to various cost…

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: If the activities that generate overhead costs vary between departments and products, adopting a…

A: The Answer

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: Which of the following statements best describes why the use of a single plantwide rate to allocate…

A: SOLUTION FORMULA = PLANTWIDE OVERHEAD RATE = TOTAL OVERHEAD / DIRECT LABOR HOURS.

Q: Which of the following statements is not correct concerning multiple overhead rate systems? a. In…

A: In Multiple Overhead Rate, the predetermined absorption rate is different for different departments…

Q: If the predetermined overhead rate is based on the estimated level of activity for the current…

A: There are two main type of costs incurred in manufacturing the goods; 1) Direct costs and 2)…

Q: Which of the following statements is not correct concerning multiple overhead rate systems? a. In…

A: Solution- A multiple overhead rate system is more complex than a system based on a single plant wide…

Q: Hoskins Co. uses a plant-wide factory overhead rate based on direct labor hours. Overhead costs…

A: Overhead Cost: Overhead cost is the expense incurred in the operations of a business. This expense…

Q: Using a plantwide factory overhead rate distorts product costs when: a.significant differences…

A: Plant-wide overhead rate: The traditional method allocates the overhead costs based on the factor…

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: Which of the following is correct with respect to closing out overapplied manufacturing overhead to…

A: The Over Applied or Under applied Manufacturing Overhead is Difference between Manufacturing…

Q: Which of the following is false? Multiple Cholce Overhead costing accuracy is Improved by the use of…

A: A departmental rate of overhead is a charge that is based on the units of production made by various…

Q: Assigning manufacturing overhead to a specific job is complicated by all of the below except:…

A: Manufacturing Overhead:-It is an indirect cost incurred during the production process. It includes…

Q: Which of the following statements is not correct concerning multiple overhead rate systems? a. None…

A: Overheads are the various indirect material, labour and other costs incurred during a manufacturing…

Q: Which of the following statements is false? (You may select more than one answer.)a. In recent…

A: Manufacturing Overhead cost mean costs apart from direct costs i.e. those indirect costs which are…

Q: Which of the following statements is true regarding activity-based costing systems?     ABC…

A: Activity-based costing systems have separate indirect cost allocation rates for each activity.  ABC…

Q: Which of the following is correct with respect to closing out overapplied manufacturing overhead to…

A: If overhead is overapplied, more overhead has been applied to inventory than has actually been…

Q: Which of the following is NOT true ?         a. The salary of the factory manager is considered…

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.