Which of the following is/are not true about Committed costs   a. They are costs incurred to maintain a company's facilities.   b. They are costs over which the management has little or no discretion.   c. Depreciation, Insurance, Taxes etc are examples of committed costs.   d. They are also known as Programmed costs.

Q: What is the rationale behind treating period costs as current expenses? a. Period costs are…

A: Period cost is the cost which is incurred during an accounting year but not directly related to…

Q: Discretionary costs: are variable in relation to the level of activity, such as the production or…

A: Cost means the amount incurred for running the business. Discretionary cost means the cost which is…

Q: Fixed costs are distributed, what is the profitability of the remaining services if the company…

A: Introduction:- Fixed costs are cannot be avoided. Fixed costs are distributed remaining…

Q: When making outsourcing decisions, which of the following is true? a. Expected use of the freed…

A: When making decision on make or buy decision or which are otherwise called as Outsourcing decisions,…

Q: Which of the following is not included in the calculation of the lifecycle cost of a product?…

A: Cost of disposal refers to the additional expense incurred as a result of the disposal of an asset,…

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

A: We know that objective of every business is to attain profitability  Now, Profit for business is =…

Q: Which of the following is NOT one of the definitions of "Cost" concept? Select one: a. Cost means…

A: Cost is very broad term used in accounting. It denotes amount and level of expenses that can be…

Q: Indirect costs occur when? A. Resources are shared by more than one product or service. B. Costs…

A: All those expenses that are incurred in common for different projects, products, or business…

Q: A by-product is best described as *   a. A product that s produced from materials that would…

A: By product is the product that is manufactured with the primary product but later on separated from…

Q: Management Accounting) If fixed production costs are not allocated to manufactured products, this…

A: SOLUTION FIXED COST INCLUDES THE RENT OR MORTGAGE PAYMENT YOU PAY FOR YOUR FACTORY AND OFFICE…

Q: Classify the following manufacturing costs of Business Solutions as either (a) variable (V) or fixed…

A: Introduction:   We can separate expenses of a company into different categories. These are termed…

Q: Which of the following is NOT true about the cause-and-effect criterion when estimating a cost…

A: The cause and effect analysis is one of the factors for making cost allocation decisions. The cost…

Q: Explain whether the production manager should be held accountable for each allocated cost as…

A: The performance of a manager should be evaluated using controllable costs only. All the other costs…

Q: The Maintenance Department of a company is considered to be a: A) Revenue Center B) Cost Center C)…

A: generally, the maintenance department is responsible and accountable for maintenance.  a cost center…

Q: What is the danger in allocating common fixed costs among products or other segments of an…

A: The costs which are not allocated to any specific segment in the business organization are called…

Q: Which of the following is NOT a period cost? Select one: O a. manufacturing costs. O b. general and…

A: Product cost means the cost of producing one unit of finished goods. Period cost means the cost that…

Q: Which is the best definition of start-up costs? a. All activities associated with organizing a new…

A: Costs are that worth of money which is utilized to pay for the expenses. Costs are incurred to start…

Q: Research and development activities may include (a) personnel costs, (b) materials and equipment…

A: Research and development cost: These are the cost that is incurred on the research for producing the…

Q: Which of the following statements is most correct about step costs?  they have the same behaviour…

A: Marginal costing is the one by which the cost of additional unit production is calculated. Under…

Q: Which of these costs is considered as the most important cost because if it is not met, an…

A: A company income statement will report the net income as the total revenue in excess of the total…

Q: There are three categories of costs: fixed costs, variable costs and semi-variable costs. Which of…

A: Semi-variable cost includes both fixed and variable costs. In this, most of the part is fixed but…

Q: What do you mean by revaluation model? (Answer should be related to Property, Plant & Equipment…

A: Property, plant and equipment also known as PP&E are defined as the long term assets, which is…

Q: Which of the following is NOT correct about Contribution concept? Select one: a. Contribution can…

A: 1. Contribution can be computed on total basis and per unit basis 2. contribution helps in…

Q: Uncontrollable costs are the costs which be influenced by the action of a specified member of an…

A: In the process of manufacturing goods certain costs are incurred. The type of costs involved in the…

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

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

Q: When making outsourcing decisions, which of the following is true? The expected use of the freed…

A: Decision making for make or buy a product are otherwise called as Outsourcing decisions, in order to…

Q: . Which of the following is the best definition of a variable cost? A. A variable cost is one which…

A: Variable costs are the costs that vary on the basis of the level of output. They are determined per…

Q: Which of the following statements is true? (You may select more than one answer.)a. A common cost is…

A: Opportunity cost is the value of the next best alternative over the selected alternative.The loss of…

Q: s it true that the direct method is a method of cost allocation that charges costs of service…

A: Direct Method- Direct method refers to the method under which the cost of the service department is…

Q: Costs that are treated as assets until the product is sold are

A: Asset is a resource from which a entity expects future economic benefits from usage of such asset.

Q: A department that incurs costs but does not generate revenue is calleda(n) (a) profit center.(b)…

A: The cost center represents the unit of the business that does not generate revenue but incurs cost…

Q: For each of the following statements, indicate whether it is true, false, or uncertain. a. A cost is…

A: Total cost is the summation of fixed costs and variable costs incurred in the process of production.…

Q: In the context of a real-life company, an identification and discussion of the different types of…

A: The question is related to Cost Accounting. Cost  is the amount of resource given up in exchange of…

Q: Which of the following costs are irrelevant to business decisions? a. Avoidable costs b. Costs that…

A: Irrelevant cost: Irrelevant cost does not affect the decision making since they are not in the…

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: How do you explain the phrase," Fixed overheads consist of costs which are not subject to change…

A: The costs incurred on the production are distinguished as fixed and variable cost.

Q: Which of the following is NOT part of a firm’s Total Cost of Ownership for an information system?…

A: The cost of ownership of an information system includes personnel costs, Installation costs for…

Q: Which of the following statements is true of raw materials? ) a) They are categorized as consumer…

A: Raw material known as Unprocessed material, that is basic material from which a final product to be…

Q: What is the danger in allocating common fixed costs among product lines or other segmentsof an…

A: Fixed cost: It can be defined as the cost that does not vary with an increase or decrease in the…

Q: Why is the form of activity-based costing described in this chapter unacceptable for external…

A:

Q: Indirect cost is the cost that cannot be directly attributed to the production as these costs are…

A: Cost is the amount incurred in the regular course of the business. It may be direct or indirect.