Why is knowledge of cost behaviour important for managerial decesion making ? Give an example to illustrate your answer

Q: objective of Managerial Accounting?

A: Managerial accounting is the system in which the method of accounting provides such statements or…

Q: A very key concept in managerial accounting is how costs "behave", either fixed or variable. Once we…

A: Fixed Cost: These are costs that will remain the same irrespective of production or number of units…

Q: he management wants to know about the cost behaviour and how to classify the cost according to its…

A: Cost behaviour refers to an aspect which helps in indicating the change incurred in costs when there…

Q: Explain the Role of activity based costing technique in improving organisational performance.

A: SOLUTION- ACTIVITY BASED COSTING-  IT IS USED TO GET A BETTER GRASP ON COSTS ALLOWING COMPANIES TO…

Q: For what purpose should the managerial accountant be careful to not use joint cost allocations?

A: Joint costs: The total costs incurred prior to the split-off point, where the joint products are…

Q: Why are cost centers considered to be more appropriate than profit centers for production…

A:

Q: Why are top management support and cross-functional involvement crucial when attempting to implement…

A: Activity based costing system is a form of costing system in which cost is analysed by dividing the…

Q: ow important profit center in managerial accounting

A: Profit Center - Profit Center is the individual unit operating independently from the main branch or…

Q: What level of importance do product costs play in the business process? what kind of management…

A: Product cost: Cost incurred to produce a product is called product cost. It includes the cost of…

Q: w important cost center in managerial accounting es

A: Cost centre is very important in the managerial accounting and responsible for tracking expenses and…

Q: What is the significance of managerial economics in Accountancy?

A: Accountancy is related to summarizing, recording, classifying, analysing and bookkeeping the…

Q: explain and describe the various costing method in management accounting.outline their advantagesand…

A: A cost is assigned to a product made using product costing methodologies. Each of these strategies…

Q: Why is knowledge of cost behavior important for managerial decision making? Give an example to…

A: Meaning of Managerial decision making  Every organization have the planned goals which are to be…

Q: w product cost information is use

A: Product Cost: Product costs are costs that are incurred to make a product that's intended available…

Q: how does standard costing system helps managers to make decisions

A: Standard costing is said to be a practice where expenses for production process are estimated in…

Q: Cost and Costing, as well as the importance of calculating costs in product management, may be…

A: Cost refers to the value of money that has been used to produce or manufacture something. It can…

Q: ow Responsibility Accounting important in manageria

A: Managerial accounting is a system or process that collects and organizes financial reports,…

Q: Identify and explain the managerial accountant’s primary objective in choosing a transfer-pricing…

A: Return on investment (ROI): Return on investment evaluates how efficiently the assets are used in…

Q: Why do managers need to know the cost of their products?

A: Job order costing: Job order costing is one of the methods of cost accounting under which cost is…

Q: How standard costing control the business activity

A: Standard Costing is the technique of setting up standard costs and applying them to measure the…

Q: Who in the typical firm or organization is responsiblefor cost management?

A: Cost Management:   Cost management involves the development and use of cost management information…

Q: Evaluate cost factors influencing a company's decision.

A: Cost factor is the factor or an element which is related to unit of product for which some amount of…

Q: How investment center important in managerial accounting

A: The process of using the financial information the entities' managers in order to make decisions is…

Q: Why do managers assign different costs to thesame cost objects?

A: A cost object can be defined as something to which the management feels the need to separately…

Q: Define standard costs and explain how they assist managers in controlling costs.

A: standard cost: Standard cost is an estimated or predetermined cost based upon existing conditions.…

Q: the uses of cost information in decision making to managers

A: Cost: It is a value related to the product that determines its purchasing value. A cost, in general,…

Q: What is activity-based management? How is it different from activity-based costing?

A: Activity-based management: Activity-based management is the process of applying activity-based costs…

Q: How is cost accounting information used by management? Why is unit cost information important to…

A: Cost Accounting:-It is a method of calculating and assessing the cost and expenses related to the…

Q: Why would a corporation choose process costing over task order costing? How are the two systems…

A: Here is the Answer

Q: Explain the Role of life cycle costing in improving organisational performance

A: Life cycle costing: It refers to the lifetime costs that is incurred on an item or an asset over its…

Q: Explain the difference between period cost and product cost , provide one example for each type. The…

A: Period costs: The costs (especially the overheads) related to the specific period are called period…

Q: What criteria might managers use to guide cost-allocation decisions? Which are the dominant…

A: Cost Allocation:The process of assigning the cost to the cost object is cost allocation. The cost…

Q: Are the concepts underlying a relevant-cost analysis still valid in an advanced manufacturing…

A: Activity-based costing: It is a method that helps in finding the activities performed by a company…

Q: how is focusing on costumer value changing managerial accounting?

A: Customer is the person or firm which procures the goods or avails the services from the business.…

Q: Why does activity-based costing appeal to some companies?

A: Introduction: In the ABC system, various overhead rates refer to all categories of overhead costs,…

Q: Describe three different ways in which managers determine cost behavior, which do you think is most…

A: Cost behavior analysis: It is the investigation of how certain expenses carry on in a business.…

Q: 1. What is the primary trade-off an accountant must consider when deciding whether to identify cost…

A: Answer 1: Is the cost/benefit of the process reasonable for more accurate behavior obtained.

Q: How is a scatter diagram used to identify and measure the behavior of a company’s costs?

A: Answer: In the scatter diagram method represents the costs behavior graphically. By plotting all the…

Q: How is the concept of product costing applied in service industry firms?

A: product costing: It is the method of allocating direct and indirect costs to units of products…