65 Which of the following costs is/are relevant costs:I. The cost of a special device that is necessary if a special order is accepted.II. The cost proposed annually for the plant service for the grounds at corporate headquarters.II. Joint production cost incurred, to be considered in a sell at split-off point versus a processfurther decision.IV. The cost of alternative use of plant space to be considered in a make or buy decision.V. The cost of obsolete inventory acquired several years ago, to be considered in a keep versusdisposal decision. *O II, III and VO III and IVI and IVI and II

Relevnt cost is the cost which is expected to be incurred only for a particular order. It includes…

Answered: Which of the following costs is/are…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 6E

See similar textbooks

Similar questions

For the following descriptions state whether the cost is controllable or uncontrollable by responsibility center managers. A. property tax of an existing manufacturing facility B. research and development of a product C. advertising of a product D. insurance cost of the existing manufacturing facility E. design of a product
For E2-17, prepare any journal entries that would have been different if the only trigger points had been the purchase of materials and the sale of finished goods. Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)
Consider which of the above costs is relevant to the decision situation? a. The cost of existing inventory, in a keep vs. disposal decision. b. The cost of special electrical wiring, in an equipment acquisition decision. c. The salary of a supervisor who will be transferred elsewhere in the organization, d. in a department-closure decision.
a company is trying to decide whether to sell partially completed goods in their current state or incur additional costs to finish the goods and sell them as complete units. Which is NOT relevant to the decision? a- the costs incurred to process the units to this point b- the selling price of the partially completed units c- the costs that will be incurred to finish the units d- the costs that will be incurred to finisht the units
The cost of inventories shall comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Which of the following cost shall be included in the cost of inventories? a. Administrative overheads that do not contribute to bringing inventories to their present location and condition. b. Abnormal amounts of wasted materials, labor or other production costs. c. Storage costs unnecessary in its production process. d. Import duties and other taxes, transport, handling and other costs directly attributable to the acquisition of finished goods, materials and services.
Which among the following decision can be taken with Life Cycle Costing method? a. Making choice between competing supplies of products and services b. All the options listed c. Purchase of a machinery to be used in production process d. Implementing new computerized system in the company
Which is the best definition of start-up costs? a. All activities associated with organizing a new entity. b. Organization costs. c. One-time activities for opening a new facility, introducing a new product or service, conducting business in a new territory, conducting business with a new class of customer, initiating a new process in an existing facility, or some new operation. d. Activities related to routine ongoing efforts to refine or otherwise improve the qualities of an existing product, service, process or facility.
Within the accounting system of a group of companies, the following types of expenses are incurred. Complete the following table by placing each expense in the correct cost classification. Reference Number Types of expenses 1 Costs of opening a new facility 2 Costs of conducting business in a new location or with a new class of customer (including costs of staff training) 3 Costs of site preparation 4 Costs of testing whether the asset is functioning properly 5 Electrical installation costs 6 Costs of dismantling and removing the item and restoring the site on which it is located 7 Administration costs 8 Import duty of an imported machine 9 Purchase of a five-year maintenance contract with plant 10 Legal fees for sales and purchase agreement for acquisition of land 11 Interest on loan on a self constructed property after the asset is ready for use 12 Architect fees incurred for self constructed building 13 General overheads incurred for self…
Which of the following costs is relevant in deciding whether to accept a bid to sell obsolete items remaining in inventory? A .Direct materials cost of producing the units B. Engineering costs for design of the units C. Shipping costs D. Product-testing costs
Which of the following costs would not be included in the conversion cost for a furniture manufacturer? Group of answer choices Indirect materials or manufacturing supplies Wages of Machine operators working with cutting saws Wood Factory equipment depreciation
Arklan Production is upgrading its manufacturing process from a manual process to a highly automated system. Management believes that the new system will result in greater efficiencies and a better finished product. Arklan is also working on a plan to downsize staff after the implementation of the new system. Arklan has used a traditional absorption costing system to calculate unit product costs for external financial reporting. In the past, Arklan has allocated its manufacturing overhead costs using a predetermined plant-wide overhead rate based on direct labor hours. The controller realizes that the new system may require changing the overhead allocation process. Management plans to take the opportunity to reconsider other improvements to the costing system. Identify and explain three benefits of using departmental overhead rates to allocate overhead costs. Explain the difference between absorption costing and variable costing. Identify which is more suitable for internal…
Under variable costing, which of the following costs would be included in finished goods inventory? a. salary of vice president of finance b. wages of carpenters in a furniture factory c. straight-line depreciation on factory equipment d. salary of salesperson

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Principles of Cost Accounting

Accounting

ISBN:

9781305087408

Author:

Edward J. Vanderbeck, Maria R. Mitchell

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Principles of Cost Accounting

Accounting

ISBN:

9781305087408

Author:

Edward J. Vanderbeck, Maria R. Mitchell

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS