Why is it difficult to assign a dollar figure to an intangible cost? Can it ever be done? Explain your answer, and provide an example.

Q: Is corrective action always necessary when actual costs are higher than standard costs

A: A company which manufactures products and goods keeps a sharp eye on its costs. When the actual cost…

Q: What are the Nonmanufacturing costs?

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Describe cost depletion and percentage depletion. Whyis the percentage depletion method permitted?

A: Depletion: Depletion is defined as the reduction in the value of natural resources due to its…

Q: What is the process of allocating the cost of natural resources to expense as they are used?

A: Natural resources usually include oil reserves, coal deposits, and mineral deposits. The natural…

Q: What effect do minor deviations from the EOQ have on totalinventory cost?

A: Minor variations from the EOQ will not in general highly affect the total inventory cost except if…

Q: How can the WACC be both an average cost and a marginal cost?

A: Weighted average cost of capital is the aggregated cost of capital with respect to the weights or…

Q: Explain any one pros and cons of historical cost.

A: Historical cost is one of the four basic accounting principles. This method is used under Generally…

Q: A sunk cost can be described as which of the following?     A historical cost     Cannot be…

A: Sunk Cost: The sunk cost is the historical cost that already has been incurred previously, which is…

Q: What are the two approaches that can be used to adjust for flotation costs?

A: The cost which is arises while issue new stock or shares in the market is commonly known as floating…

Q: What is the purpose for determining the cost per equivalent unit?

A: Equivalent units of production are applied to the work-in process inventory at the end of an…

Q: Why do we include all the incidental charges relating to the acquisition of a machine in its cost?

A: When a machine is acquired, it needs to be capitalized as fixed assets and depreciation needs to be…

Q: How does an engineered cost differ from a discretionary cost?

A:

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: What does it mean to externalize costs?

A: Externalizing costs means generating profits by reducing the indirect costs by imposing them on…

Q: Of the following costs related to the development of mi one is not a part of depletion cost?

A: Deplation Cost One of two accounting systems for allocating the costs of extracting natural…

Q: (a) What are the percentage depletion and the cost depletion allowances?

A: Depletion: It refers to the process of proportionately distributing the cost of the extracting…

Q: What costs must gross profit cover for Superior Construction? The gross profit must cover these…

A: Gross Profit: Gross profit is the amount of money a company earns after deducting all of the…

Q: Explain realizable value less than cost or cost greater than net realizable value?

A: Introduction:- The following formula used to calculate net realizable value as follows under:- Net…

Q: em. b. the amount of money paid for an item,

A: Opportunity costs are the potential gains that an individual, investor, or corporation foregoes by…

Q: Why are inventories valued at the lower-of-cost-or-netrealizable value (LCNRV)? What are the…

A:

Q: Why might it be misleading to show the fixed costs on a per unit basis?

A: Fixed Costs are those costs that do not change in aggregate in relation to the level of production…

Q: What circumstances might create distortions where estimated costs are not an accurate representation…

A: The estimated costs are the costs determined through the estimation process on past…

Q: What is the difference between the methods of calculating cost of goods, periodic vs perpetual?

A: Inventory: Inventory refers to the goods purchased or material purchased and manufactured which is…

Q: Why put the normal loss costing into the true loss account for abnormal loss?

A: Cost accounting: Cost accounting is a form of managerial accounting that aims to capture a company's…

Q: The marginal cost of an asset is equivalent to its EUAC. True or False?

A: Marginal Cost of Asset means the cost required to run the asset for the next period. EUAC =…

Q: What is meant by the incremental cost of refinancing?

A: Refinancing refers to making change in the capital structure of the company by replacing the…

Q: Explain Amortised cost and how to calculate it.

A: Amortized cost refers to the cost that helps to allocate the cost of financial/intangible assets…

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: How can you describe the term Historical Cost? a. It is the amount paid to purchase an item plus any…

A: Historical value is the value of asset at it original cost when acquired by the company. Most of the…

Q: pletable amount by the estimated life in terms of units of output?

A: Depletable amount refers to the amount left after salvage value from the total cost of an intangible…

Q: In what sense is the WACC an average cost? A marginal cost?

A: Weighted average cost of capital is the firm's cost of capital which is based on proportion of each…

Q: Why should the total costs of the machine be viewed as an asset and allocated against the future…

A:

Q: When is depreciation a product cost? When is depreciation a period cost Please Explain both briefly

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: What is the total cost of ownership concept? What are some of the challenges that must be overcome…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Define relevant costs. Why are historical costs irrelevant?

A: Relevant cost: A cost that is specific in the managerial decision making are called relevant cost.…

Q: What type of cost is expertise? Is it a fixed cost or a variable cost? Defend your answer.

A: SOLUTION- FIXED COST  ARE THOSE COST WHICH DO NOT CHANGE WITH A REASONABLE LEVEL OF CHANGE .…

Q: What is mining? Explain why the real cost of goldis more than what most people pay for it. What…

A: The use of cyanide in gold mining is common. The extraction of gold requires a large labor as well…

Q: Why is cost important?

A: Cost - it means expenses incurred by an organisation to make an product whether it is direct cost or…