Distinguish between actual costing and normal costing.

Q: Discuss the advantages of activity-based costing.

A: Activity Based Costing:   The approach of activity based costing keeps the record of resources…

Q: After understanding and studying Standard Costing: 1. Which of the following management function is…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: Define and give examples of the following terms: cost pool, cost object, and cost allocation (or…

A: Responsibility accounting: Responsibility refers to the several concepts and tools used by managers…

Q: discuss the various costing methods?

A: Various Methods of costing are as follows: 1) Unit Costing 2) Operating Costing 3) Contract Costing…

Q: benefits of costing system

A: A costing system is prepared to analyze the costs incurred in a business organization. The system…

Q: How does standard costing differ from actual costing?

A: Actual cost system: An actual cost system uses actual costs for “direct materials, direct labor, and…

Q: Define actual costing

A: Actual Costing:  Actual costing is based on the actual cost of direct materials, direct labor and…

Q: a. what are the primary differences between traditional and activity-based costing?

A: Traditional costing and Activity based costing are two types of costing methods that are being used…

Q: Explain the difference between the variable and absorption costing methods.

A: Under Variable Costing method, only variable costs are considered which includes only variable cost…

Q: Explain the similarities between ABC and traditional costing .

A: Traditional Costing is the method of allocation of cost based on a single cost driver; whereas under…

Q: How is the Conversion Costs account used in JIT costing?

A: Just-in-time manufacturing system: Just-in-time (JIT) manufacturing system is an approach to…

Q: How is the distinction between direct and indirect costs handled differently under volume-based…

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

Q: Historical costing is also called

A: Step 1 As per US GAAP, A historical cost is a method of value of an asset on the balance sheet at…

Q: By use of relevant examples, differentiate between the following: a. Relevant costs and Non-relevant…

A: In general words, cost means money that is spent to gain something. In accounting terms, the cost is…

Q: Explanation of the meaning of the target costing ?

A: Cost accounting system is a framework that guides the firm to calculate their cost and helps in…

Q: Explain activity-based product costing.

A: Activity-based costing (ABC) would be a costing technique that assigns overhead and indirect costs…

Q: Why is it important to keep track of both direct and indirect costs? How do these costs effect…

A: (a )If we keep a tracking record of direct and indirect costs we can determine the firm's…

Q: Explain actual costing.

A: Actual costing is a system of cost accounting in which actual material cost, actual labour cost and…

Q: What is simple costing system? Explain?

A: Costing system: Costing system is a process used to determine the cost of the product for better…

Q: Absorption Costing approach

A: Absorption costing refers to method of accounting in which the cost of manufacturing are absorbed by…

Q: How is activity-based costing (ABC) different from traditional cost systems?

A: Cost accounting is a branch of accounting in which all costs are analysed and accumulated to…

Q: Explain the difference between  - Absorption and Marginal Costing

A: The Question has covered the concept of Absorption and Marginal Costing. Absorption Costing The…

Q: Define normal costing

A: Process Costing:   Process costing is a method of cost accounting, which is used when the production…

Q: Critically evaluate the concept and application of marginal costing

A: Marginal Costing :— Marginal Costing is the Part of Cost management Techniques.  Marginal Costing…

Q: What is absorption costing and marginal costing in the context of overhead costs? Discuss the…

A: The difference between Absorption Costing and Marginal Costing is discussed hereunder :

Q: Explain the purpose of product costing.

A: Product costing: The process of assigning the production costs to all output of the organization is…

Q: What is a costing system?

A:

Q: Discuss the basic difference between absorption costing and variable costing from a product-costing…

A: It is a technique of costing wherein: All variable manufacturing costs ( like direct material,…

Q: How to prepare income statement using absorption costing?

A: Absorption costing considers the fixed overhead costs for production as per the units sold and not…

Q: Explain the benefits of   Activity Based Costing ( ABC)

A: The overhead cost is applied to the production on the basis of traditional costing or activity based…

Q: Briefly explain the difference between absorption costing and variable costing.

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With…

Q: Why is activity-based costing described as a “two-stage” costing method?

A: Definition: Activity-Based Costing: Activity-Based Costing refers to the allocation of the factory…

Q: Explain briefly the issues with Activity Based Costing

A: Activity based costing is a costing system in which indirect costs which are also known as overhead…

Q: How can cost estimation be used in activity-based costing?

A:

Q: What are the two stages of allocation in activity-based costing?

A: Activity-based costing is one of the methods of allocating overhead costs. This method focuses on…

Q: Describe value engineering and its role in target costing.

A: Value engineering is a cost management method that re-examines the activity of the production to…

Q: Explain the features of cost accounting.

A: Cost accounting is a branch of accounting in which all the costs involved in manufacturing of a…

Q: Product and period cost according to absorption costing and Variable costing with examples ?

A: Absorption costing is a method where all the cost related to the manufacturing process is considered…

Q: What is activity based costing?

A: Activity based Costing is a method of costing system which focuses on activites. In this method of…

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.