Which of the following statements is true: a. Activity based costing can only be used in manufacturing companies. b. None of the given answers is correct c. Activity based costing (ABC) cannot be used for external reporting d. Traditional costing cannot be used for internal reporting e. A company can either choose Activity-based costing (ABC) or the traditional costing system to allocate its costs for external reporting

Q: 1.Choose all of the following statements that are true. a. Opportunity costs and sunk costs are not…

A: a. Opportunity costs are not shown in the financial statements of companies. While, sunk costs…

Q: If the Activity-Based Costing (ABC) method's main intention is to find a possibility to cut the…

A: ABC (Activity based costing) framework was created to manage the drawbacks of customary costing…

Q: ncome from operations is one of the most important items reported by a company. Depending on the…

A: Absorption costing: Absorption costing is used to compute cost of a product. Under this method cost…

Q: Each of the following statements is true EXCEPT: Select one: a. traditional product costing systems…

A: Traditional  costing system  involves  allocation  of overhead and cost. It is a reactive approach.…

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

A:

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: First: Activity-based management seeks to eliminate waste by allocating costs to products that waste…

A: Solution: First statement is false as "Activity-based management does not seeks to eliminate waste…

Q: When companies use automated production processes, they tend to condense the three manufacturing…

A: Automated production processes means those processes in which there is no manual intervention of…

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: 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: What is a predetermined overhead rate and explain why many companies use it?   2.  Many…

A: A predetermined overhead rate:-It is an allocation rate that is applied to the estimated cost of…

Q: Which of the following types of companies would be most likely to benefit from activity-based…

A: activity-based costing -   generally, activity-based costing is used to allocate indirect costs or…

Q: Which of the following statements is false ? a. Volume-based costing has typically resulted in…

A: There are two methods of costing that are in place generally. One is volume based costing and other…

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: Marginal Costing is a key tool used by Managements for Cost-Volume- Profit analysis enabling…

A: Absorption costing is the method of managerial accounting for capturing all the costs linked with…

Q: Explain the difference between public accounting and managerial accounting. Provide a hypothetical…

A: Public Accounting: A public accounting company is a business that offers accounting services to…

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 statements regarding service organisations is incorrect? Select one a. Many…

A: Service enterprises means the enterprises which is in the business of providing services like…

Q: der traditional costing systems, which calculate a single predetermined overhead rate using volume-…

A: Overhead means the cost indirectly incured for manufacturing the product.

Q: ?Which of the following statements is false Activity-based costing typically provides less…

A: In order to solve in this question, we need to analyse the given statement one-by-one.

Q: Which of the following statement is false?         Multiple Choice   a)The contribution margin…

A: Ans. Absorption costing allocates fixed manufacturing overhead to a product whether or not it is…

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 false when using ABC in a service industry? analyze operations accumulated…

A: ABC (activity-based costing) seems to be an approach for allocating overhead expenses more…

Q: The cost of minor materials, such as nuts, glue, tape, low value chemicals, etc. used in the…

A: Materials, such as nuts, glue, tape, low-value chemicals, etc. are indirect materials. This is…

Q: d in the cost of the product b) that it is not really useful for managerial decisions c) that it…

A: A cost accounting system is a system of accounting that is helpful for the internal management to…

Q: If Power Products uses process costing, which of the follow-ing are likely to be true: a. The…

A:

Q: Which among the following is not a relevant cost for decision making? a. Cost of producing…

A: Relevant Cost refers to the incremental and avoidable cost of implementing a business decision.…

Q: Which of the following statements is not true regarding the use of variable and absorption costing…

A: Absorption costing: It refers to the method of product costing in which the price of the product is…

Q: One disadvantage of activity-based costing is that it cannot be used for external reporting. This is…

A: ABC or Activity based costing is a technique in which various cost divers are used to calculate the…

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: Which of the following points about the Activity-based costing (ABC) system is NOT a correct…

A: Using activity based costing, the overheads rate is determined for different activities on the basis…

Q: Samsung must assign overhead costs to its products. Activity-based costing is generally considered…

A:

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 statements is true of activity-based costing? The main advantage of…

A: The costing method in which the manufacturing overhead costs are assigned to the goods or services…

Q: 3) Which of the following statements about activity-based costing is NOT true? A) Activity-based…

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

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: Process costing is a term used in cost accounting to describe one method for collecting and…

A: The scrap value of an abnormal loss is credited to the process account is false. The scrap value of…

Q: Please explain (True or False) thoroughly.

A: Activity based costing where Activity rate is determined for the each identified activity so that…

Q: Which of the following statements regarding activity-based costing (ABC) is false?   A.   ABC is…

A: Overheads are the indirect cost involved in the production process of the company. It is charged to…

Q: ment, operating income can be determined using absorption costing or variable costing. Select…

A: Variable costing might exclude certain direct fixed costs, whereas absorption costing covers all…

Q: Which of the following statements is not false of costing​ systems?   A. ​Activity-based costing…

A: Introduction: Traditional costing is the more simplest method which typically delivers less accuracy…

Q: The entity's management is currently reviewing all costs of production. • If the entity's accounting…

A: Cost of production: It is the cost incurred in producing the goods or providing the services. These…

Q: What from the upcoming options will be made when using the traditional costing method, relatively to…

A: Traditional Costing Method: The traditional costing methodology, which is focused on assigning…