Which of the following is NOT true ?         a. The salary of the factory manager is considered to be an indirect cost of producing one unit of product.   b. An indirect cost cannot be easily traced to a particular cost object.   c. The classification of a cost as direct or indirect does not depend on the cost object.   d. A direct cost can be easily traced to a particular cost object.

Q: Product costs are also called Select one: O a. Indirect material costs. O b. Indirect Labor costs. O…

A: Cost are basically divided between two category: 1. Product Costs 2. Period costs

Q: Which of the following is not a product cost? Multiple Cholce O Direct materlals ) Direct labor…

A: Product cost is that which is not included in the direct manufacturing of the goods. Direct…

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

A: Answer: c) Advertising expenditure

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: Which of the following statements is true regarding by products?   a. Process costing is the only…

A: Solution: "Job order costing systems may have instances where by-products result from the production…

Q: Identify the following as fixed costs (F), variable costs (V), or mixed costs(M). direct labor…

A: A cost that changes, in total dollar amount, with the change in the level of activity is called…

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: Which of the following is false about activity-based costing?   Implementing an activity-based…

A: Activity-Based Costing (ABC): Under activity-based costing the different cost is assigned to a…

Q: Which among the following is not a direct cost? a. Labour b. Raw material c. Factory wages d.…

A: Introduction : Direct costs: The cost which are directly linked to the manufacturing of a product…

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: An activity-based costing system that is designed for internal decision-making will not conform to…

A: Activity-based costing: Under this costing, we find out the economic order quantity. In this…

Q: Which of the following is true about absorption costing? No fixed factory overhead is charged to…

A: Solution: The true statement about absorption costing is that "over-applied factory overhead is…

Q: Manufacturing costs that cannot be classified as either direct materials or direct labor are known…

A: Manufacturing costs is the cost incurred in the production of any product or unit of the company.…

Q: Which would NOT be relevant in a make- or- buy decision? a) factory deprciation b) direct materials…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

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: An allocation base! O a. is a measure used to assign prime costs to products and services O b.…

A: An allocation base is the basis on which Cost accounting allocates overhead costs.  An allocation…

Q: Determine the following is best described as a fixed, variable, or mixed cost with respectto product…

A: Definition: Variable cost: The cost which changes with the change in the level of activity is called…

Q: Under variable costing system only those costs of production that vary (variable) with production…

A: Variable costing is also called marginal costing. Under variable costing all variable cost that is…

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: 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: Which of the following is not considered a product cost? Select one: a. direct labor b. direct…

A: Product cost includes all the cost incurred to manufacture the product.

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 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: Which of the following is not considered a product cost?   a.direct labor b.direct materials…

A: Lets first with the understanding meaning of product cost. Product cost means all cost incurred to…

Q: Which of the following statements is true? O a. A company can either choose Activity-based costing…

A: Activity-based costing shows the economic cost of the department because it allocates indirect costs…

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? *   A. The traditional approach to costing uses many…

A: Cost accounting is one of the branches of accounting. Under this, all costs related to the product…

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 statements is TRUE?   a. Batch cost shall be the cost of production or…

A: Solution: Statement A= false  Because Process costing shall be the cost of production or operation…

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 is correct with respect to closing out overapplied manufacturing overhead to…

A: Manufacturing overhead refers to expenses that aren't directly related to production. It must be…

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: Explain why service companies use different activity bases than manufacturing companies to classify…

A: Service companies are those companies which provide services to their clients  such as…

Q: Which of the following is NOT correct about the classifications of costs? Select one: a. On the…

A: Costs in the business can be classified into different types like on the basis of time, on the basis…

Q: Manufacturing costs that cannot be dassifled as either direct materials or direct labor are known as…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Wages paid to factory staff is an example of indirect cost

A: Indirect Labor: The term "labor" refers to the overall amount of personnel and skill necessary to…

Q: Which of the following correctly describes the term cost driver? a. The inflation rate which causes…

A: Cost driver are the compotents that are directly related to the product that determine the cost of…

Q: Which costing method tends to overstate the cost of high-volume products? a. Traditional…

A: Activity-based costing (ABC) is a costing method that identifies activities in an organization and…

Q: Which one is a controllable cost? Select one: O a. Office salary O b. Cost of Raw material O c. Rent…

A:

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…