a) What are the advantages of accumulating costs by departments or jobs rather than for the factory as a whole? b) In what way does the accounting treatment of factory overhead differ from that of direct materials and direct labor costs?

Q: Which one of the following represents a period cost? 1) The VP of Sales' salary and benefits 2)…

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

Q: Which of the following would most likely be a product cost? O A. Salary of VP of sales O B.…

A: Product cost includes all those costs which are directly attributable to the process of converting…

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: what are the two major differences for service companies (compared to manufacturing companies) that…

A: “Since you have posted a many questions, we will solve first question for you. To get the remaining…

Q: Which of the following would be included in factory overhead? Group of answer choices a salary of…

A: There are two types of factory costs that are direct and indirect cost.

Q: nder what conditions might a company use activity-based costing to allocate factory overhead to…

A: Activity-based costing (ABC costing) is a way of assigning manufacturing overhead costs to…

Q: Which of the following is correct with respect to closing out overapplied manufacturing overhead…

A: The correct answer is  Option a.) Cost of goods sold will be lower.....

Q: true or false. plase answer Assembly line worker’s wages is a controllable cost, product cost,…

A: “Since you have asked multiple questions, we will solve the first question for you.  If you want a…

Q: Which of the following costs is a direct cost for a manufactured product? A) Depreciation Expense…

A: The direct cost is expense that can be directly traceable to specific product.

Q: Which of the following is part of factory overhead cost? a.depreciation of sales person's vehicle…

A: Cost accounting system: Cost accounting system of an organization consists of procedures and…

Q: Why should an employee have some understanding of costing if they are not in the accounting…

A: Costing may be defined as, ''The techniques and processes of ascertaining costs''. It may further be…

Q: Which of the following is not likely to be treated as product cost? Depreciation on the factory…

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

Q: Which of the following is not a period cost? Group of answer choices Sales commissions. Public…

A: Cost can be divided in to different groups including period cost, product cost etc. Period cost are…

Q: QUESTION 1: Identify the right answer for the following statements. The salary of the director of a…

A: The sum of all expenses incurred in producing an item or service that has been sold is known as the…

Q: Which of the following accounts would be a period cost rather than a product cost?     Freight out.…

A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product

Q: Which one of the following represents a period cost? O 1) The VP of Sales' salary and benefits 2)…

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

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 among the following is not a direct cost? a. Labour b. Raw material c. Factory wages d.…

A: Introduction : Direct costs: The cost which are directly linked to the manufacturing of a product…

Q: Which of the following items is an indirect cost? A. The rent of the factory in which products are…

A: explanation : A. The rent of the factory in which products are madeB. The wages of the production…

Q: Manufacturing costs always allocated to jobs rather than being traced to job (like Direct materilas…

A:

Q: How do we calculate factory cost? Prime cost + Opening WIP- Closing WIP+ Factory Overhead b. Total…

A: Factory cost includes the cost incurred on the factory on the goods that are meant to sold.

Q: Why do businesses apply overhead to tasks using fixed rates rather than real manufacturing overhead…

A: This question deals with real manufacturing overhead costs:

Q: Which of the following would not be an element of factory overhead?

A: Factory Overhead are not direct cost like direct materials and direct labor however they are helpful…

Q: Google applies overhead to product costs. What account(s) is(are) used to eliminate overapplied or…

A: Definition: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a…

Q: of the following is an example of direct labor?     Salary of the vice-president of op

A: Direct Labour refers to the labour directly involved in the manufacturing process for producing the…

Q: In what way does the accounting treatment of factory overhead differ from that of direct materials…

A: Factory overheads include all indirect costs incurred during the manufacturing process to maintain…

Q: Which of the following Overhead cost of a company is likely to have the least control a. Machine…

A: The overhead cost includes total indirect costs incurred in the production process.  It includes…

Q: Which of the following accounts would be a period cost rather than a product cost? a   Freight out.…

A: Variable costs: These costs are incurred in conjunction to the volume of goods produced or sold. It…

Q: An example of labor-related costs is:   bonus pay factory labor fringe benefits operating expense

A: The labor costs include the wages and salaries paid to employees.

Q: Which one of the following represents a period cost? Fringe benefits associated with factory workers…

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

Q: Which one of the following represents a period cost? a. Fringe benefits associated with factory…

A: Financial statements are statements which states the business activities performed by the company .…

Q: Which of the following would not be classified as manufacturing overhead?   a.indirect labor…

A: Product costs are the cost associated with the making of a product. They include direct materials…

Q: How would sales salaries be classified for a manufacturing company? Group of answer choices product…

A: Manufacturing company refers to the company which produces the finished goods from the RM (Raw…

Q: Which of the following represents the accumulated costs of incomplete ?jobs Finished Goods Inventory…

A: Inventory: It can be defined as all the goods, items, materials, and merchandise that are held by a…

Q: Why aren’t actual manufacturing overhead costs traced to jobs just as direct materials and…

A: Manufacturing costs can be divided into two categories based on its allocation; direct costs,…

Q: Which of the following is not considered a cost of manufacturing a product? Group of answer choices…

A: Total manufacturing cost, or simply the cost of producing the things that will be sold to customers,…

Q: Which of the following is NOT included in the flow of costs of a manufacturing company? Select the…

A: Purchase of raw materials form part of manufacturing cost Factory labor cost form part of…

Q: Discuss the reason why companies use predetermined (factory) overhead rates rather than actual…

A: Manufacturing overheads are the manufacturing costs that could not be directly associated with each…

Q: Manufacturing costs would not include a. Sales salaries expense b. Indirect materials used c.…

A: Manufacturing cost is the cost incurred to manufacture goods. It is the cost incurred at factory.

Q: What is the effect on the cost of goods sold and net operating income, if the cost of factory…

A: If cost of factory overhead applied are greater than the cost actual factory overhead, cost of goods…

Q: In what way does the accounting treatment of factory overhead differ from that of direct materials…

A: Factory overhead is defined as cost incurred during the process of manufacturing but not including…

Q: Which one of the following is not a production overhead cost? Production line worker’s salary…

A: Production overheads means indirect costs related to production and manufacturing of goods in the…

Q: Wages paid to factory staff is an example of indirect cost

A: Indirect Labor: The term "labor" refers to the overall amount of personnel and skill necessary to…

Q: Which of the following is NOT true ?         a. The salary of the factory manager is considered…

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.