Which of these is not an objective of Cost Accounting? O a. Ascertainment of Cost O b. Cost Control and Cost reduction O c. Determination of Selling Price O d. Assisting Shareholders in decision making
Q: The definition of the cost is the collection of cost data in some organized way by means of an…
A: Cost is amount of cost incurred
Q: True or False Cost and managerial accounting are not the same things
A: Cost accounting is the process of accounting and controlling the cost of a product,operation or…
Q: “Management accounting deals only with costs.” Do you agree? Explain?
A: Management accounting is wide field which encompasses cost computation, pricing analysis,process…
Q: Explain the relationship between the Cost Management System and the Financial Accounting System
A: Point of Differences Financial Accounting System Cost Management System Meaning…
Q: Cost accounting depends entirely on historical information. Select one: True False
A: Cost accounting is the accounting of the total cost related to production of the product. It…
Q: How cost accounting covers the problem of price assessment
A: Cost Accounting Cost accounting is also a form of group action accounting that aims to capture a…
Q: The branch of accounting that deals with evaluating the cost of products is called: O a. Financial…
A: The branch of accounting that deals with the cost of products is used to ascertain and allocate the…
Q: Explain whether the cost accounting system primarily supports internal or external reporting.
A: Cost Accounting System: Cost accounting system refers to as a framework designed by the company to…
Q: Cost accounting is an area of accounting concerned with cost determination, cost control and cost…
A: solution : Cost accounting is an area of accounting concerned with cost determination, cost control…
Q: In Cost accounting the main emphasis is on ?
A: Cost accounting is the classification, documentation, and appropriate distribution of expenditure…
Q: Determining the unit cost of manufacturing a product is an output of financial accounting. True…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: What are the differences between cost accounting and cost management?
A: Cost Accounting: Cost accounting refers that branch of accounting, which records and analyzes the…
Q: How cost accounting is useful where financial accounting could not be answered. Give any exampleto…
A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…
Q: Which of the following is not a function of Cost Accounting? a. Control cost b. Reporting to owners…
A: Solution: "Reporting to owners" is not a function of Cost Accounting. This is because the functions…
Q: What type of cost is included in economic costs, but not included in accounting costs?a. Explicit…
A: Economic costs are the costs in which consideration is given to opportunity costs as well.
Q: How you relate the differential cost with management of revenue in management accounting.
A: Management Accounting is a type of accounting which is used within the company for the purpose of…
Q: Discuss the differences between lean accounting and traditional cost accounting.
A:
Q: Distinguish between cost accounting and managerial accounting.
A:
Q: When conducting a cost-volume-profit analysis determine where the most challenges for accountant…
A: Cost Volume Profit Analysis (CVP Analysis): This analysis is helpful in determining how any type of…
Q: What is the similarities and defference between cost accontant, management accountant and fanincial…
A: Cost accountant deals with ascertainment, allocation, recording and analysis of accounting data. It…
Q: How cost accounting covers the problem of Evaluation of alternative while buying
A: Cost accounting system is a framework that guides the firm to calculate their cost and helps in…
Q: Management accounting is a subset of cost accounting. Cost accounting is a subset of both management…
A: Accounting is the process in which transactions are recorded, summarised, posted and then the result…
Q: explain and describe the various costing method in management accounting.outline their advantagesand…
A: Using product costing procedures, a cost is allocated to a product. The most frequent costing…
Q: Explain cost concepts it is relevant for the company to be aware of in decision situations such as.…
A: Here discuss about the details of the various costs which are incurred to the business entity which…
Q: Cost Accounting don’t disclosure the information? True Flase
A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…
Q: i). How cost accounting is useful where financial accounting could not be answered. Give any example…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Describe the impact that the cost constraint has on reporting accounting information.
A: Accounting information not only must be relevant and faithful, they must also pass the economic test…
Q: Choose the most appropriate answer(s): Calculation of product cost, gathering information for…
A: SOLUTION- EXPLANATION- COST ACCOUNTING IS AN ACCOUNTING METHOD THAT AIMS TO CAPTURE A COMPANY'S…
Q: Which of the following is not part of managerial accounting? Select one: O A reporting financial…
A: The accounting is a process to identify the business transactions, record the transactions and…
Q: The purpose of costing are as follows EXCEPT: Price products Make decisions record cost Formulate…
A: The purpose of costing 1. To fix the price of the product 2. For decision making 3. For…
Q: Differentiate between selling price,cost of sales and labour costs in informal and formal business.
A: Registered (or unregistered), organized (or unorganized), and supervised (or unregulated) companies…
Q: Cost accountancy
A: Cost accountancy is the application of cost accounting principles, methods and techniques to…
Q: Describe accounting concepts useful in classifying costs.
A: Costs of a business can be classified on various basis On the basis of cost behaviour On the basis…
Q: What is cost management, and how does it differ from management accounting and cost accounting?
A: Cost accounting and management accounting are two different forms of accounting, that is being…
Q: With respect to cost classifications for preparing financial statements:a. What is the total product…
A: a) Total Product cost is the cost which is incurred to manufacture the product that is intended for…
Q: Question 2: It is usually seems as cost accounting cover the financial accounting problems as:…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: A 'product' cost is a cost that is classified by: a. behavior b. function c.…
A: The cost incurred on production directly or indirectly related to production is said to be product…
Q: Statement 1: Cost Accounting relates to the conventional costing methods and techniques in…
A: Cost accounting is a branch of accounting which focuses mainly on production related activities.
Q: To make predictions about costs and income, you must first classify costs by their behavior.…
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: Define the following concepts: a) Absorption costing- b) Cost behavour-
A: Absorption (full) costing is a costing technique in which all the manufacturing costs including…
Q: Explain the role of cost accounting as it relates to financial and managerial accounting
A: The main focus of cost accounting is on cost information and cost control (managerial use), while…
Q: Which of the following is one of the difference between management accounting and cost accounting.
A: Difference between management accounting and cost accounting is given below,
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- Using the information from BDS Enterprises, prepare the income statement to include all costs, but separate out uncontrollable costs. Insert subtotals where appropriate (include one for operating income) before the uncontrollable costs. Income tax expense should be based on all expenses (that is, it will be the same amount as in question 1). Calculate net income, profit margin, ROI, and RI, excluding uncontrollable expenses. Prepare a short response to accompany the income statement that explains why uncontrollable costs are separated in the income statement.Which of the following describes the economic order quantity (EOQ)? a. It is associated with a pull inventory system. b. It is the heart of a JIT purchasing system. c. It minimizes total ordering and carrying costs. d. It minimizes stock-out costs.Managers in decentralized organizations make decisions relating to all of the following except_______. A. the companys stock price B. equipment purchases C. personnel D. prices to charge customers
- Internal costs that are charged to the segments of a business are called_______. A. controllable costs B. variable costs C. fixed costs D. allocated costsFor each of the following situations, two scenarios are described, labeled A and B. Choose which scenario is descriptive of a setting corresponding to activity-based responsibility accounting and which is descriptive of financial-based responsibility accounting. Provide a brief commentary on the differences between the two systems for each situation, addressing the possible advantages of the activity-based view over the financial-based view. Situation 1 A: The purchasing manager, receiving manager, and accounts payable manager are given joint responsibility for procurement. The charges given to the group of managers are to reduce costs of acquiring materials, decrease the time required to obtain materials from outside suppliers, and reduce the number of purchasing mistakes (e.g., wrong type of materials or the wrong quantities ordered). B: The plant manager commended the manager of the Grinding Department for increasing his departments machine utilization ratesand doing so without exceeding the departments budget. The plant manager then asked other department managers to make an effort to obtain similar efficiency improvements. Situation 2 A: Delivery mistakes had been reduced by 70 percent, saving over 40,000 per year. Furthermore, delivery time to customers had been cut by two days. According to company policy, the team responsible for the savings was given a bonus equal to 25 percent of the savings attributable to improving delivery quality. Company policy also provided a salary increase of 1 percent for every day saved in delivery time. B: Bill Johnson, manager of the Product Development Department, was pleased with his departments performance on the last quarters projects. They had managed to complete all projects under budget, virtually assuring Bill of a fat bonus, just in time to help with this years Christmas purchases. Situation 3 A: Harvey, dont worry about the fact that your department is producing at only 70 percent capacity. Increasing your output would simply pile up inventory in front of the next production department. That would be costly for the organization as a whole. Sometimes, one department must reduce its performance so that the performance of the entire organization can improve. B: Susan, I am concerned about the fact that your departments performance measures have really dropped over the past quarter. Labor usage variances are unfavorable, and I also see that your machine utilization rates are down. Now, I know you are not a bottleneck department, but I get a lot of flack when my managers efficiency ratings drop. Situation 4 A: Colby was muttering to himself. He had just received last quarters budgetary performance report. Once again, he had managed to spend more than budgeted for both materials and labor. The real question now was how to improve his performance for the next quarter. B: Great! Cycle time had been reduced and, at the same time, the number of defective products had been cut by 35 percent. Cutting the number of defects reduced production costs by more than planned. Trends were favorable for all three performance measures. Situation 5 A: Cambry was furious. An across-the-board budget cut! How can they expect me to provide the computer services required on less money? Management is convinced that costs are out of control, but I would like to know whereat least in my department! B: After a careful study of the Accounts Payable Department, it was discovered that 80 percent of an accounts payable clerks time was spent resolving discrepancies between the purchase order, receiving document, and the suppliers invoice. Other activities such as recording and preparing checks consumed only 20 percent of a clerks time. A redesign of the procurement process eliminated virtually all discrepancies and produced significant cost savings. Situation 6 A: Five years ago, the management of Breeann Products commissioned an outside engineering consulting firm to conduct a time-and-motion study so that labor efficiency standards could be developed and used in production. These labor efficiency standards are still in use today and are viewed by management as an important indicator of productive efficiency. B: Janet was quite satisfied with this quarters labor performance. When compared with the same quarter of last year, labor productivity had increased by 23 percent. Most of the increase was due to a new assembly approach suggested by production line workers. She was also pleased to see that materials productivity had increased. The increase in materials productivity was attributed to reducing scrap because of improved quality. Situation 7 A: The system converts materials into products, not people at work stations. Therefore, process efficiency is more important than labor efficiencybut we also must pay particular attention to those who use the products we produce, whether inside or outside the firm. B: I was quite happy to see a revenue increase of 15 percent over last year, especially when the budget called for a 10 percent increase. However, after reading the recent copy of our trade journal, I now wonder whether we are doing so well. I found out that the market expanded by 30 percent, and our leading competitor increased its sales by 40 percent.22) Which one of these is not an objective of cost accounting? a. Assisting shareholders in decision making b. Determination of selling price c. Cost control and reduction d. Ascertainment of cost
- Which objective of cost accounting classifies and analyzes cost date for measuring efficiency? a. Guide to business policy b. Determination of selling price c. Cost control and reduction d. Measuring and improving performance1. What are some of the limitations of cost accounting? 2. State whether the following questions is True (T) or False (F): a) Management accounting provides economic and financial information for external users such as shareholders, creditors and banks. b) Financial accounting provides information for managers and other internal users. c) Financial accounting reports past results. d) Management accounting is future oriented. e) Management accounting is required to follow generally accepted accounting principles. f) Financial accounting examines monetary and non-monetary events. g) Cost accounting is used as a means of fixing a selling price. h) Cost accounting looks at the company as a whole and not at the various units, jobs or processes. i) Financial accounting is concerned with how and why profits arise. j) Cost accounting depends entirely on historical information.State whether the following questions is True (T) or False (F): a) Management accounting is future oriented. b) Management accounting is required to follow generally accepted accounting principles. c) Financial accounting examines monetary and non-monetary events. d) Cost accounting is used as a means of fixing a selling price.
- Statement 1: Cost Accounting relates to the conventional costing methods and techniques in accumulating the cost of a product, process, project or service, including both product and period cost in accumulating cost.Statement 2: Cost Accounting aims to reflect the correct complete financial picture/information of the entity to the different shareholders. a. Statement 1 is False, Statement 2 is True b. Statement 1 is True, Statement 2 is False c. Both statements are true d. Both statements are falseWhich of the following is one of the difference between management accounting and cost accounting. Select one: a. Management accounting is based on double entry system but not cost accounting O b. Management accounting used for decision making but cost accounting used for cost ascertainment c. Management accounting is limited for internal use whereas cost accounting for external use O d. Management accounting is optional but cost accounting is mandatory1. State whether the following questions is True (T) or False (F): a. Cost accounting looks at the company as a whole and not at the various units, jobs or processes. b. Financial accounting is concerned with how and why profits arise. c. Cost accounting depends entirely on historical information.