Cost Accounting - Access (Custom Package)
15th Edition
ISBN: 9781269925143
Author: Horngren
Publisher: PEARSON
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Textbook Question
Chapter 18, Problem 18.7Q
“In accounting for spoiled units, we are dealing with cost assignment rather than cost incurrence.” Explain.
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“In accounting for spoiled units, we are dealing with cost assignment rather than cost incurrence.”Explain.
Demonstrate why expressing fixed costs on a per unit of activity basis is misleading and may result in faulty decisions.
Whether any of the following sentences about abnormal spoiling is true?
a. It is considered to be part of production.b. It is normally treated as a period costc. It is normally treated as a product cost.d. It is prorated between cost of goods sold and inventory.
Chapter 18 Solutions
Cost Accounting - Access (Custom Package)
Ch. 18 - Why is there an unmistakable trend in...Ch. 18 - Distinguish among spoilage, rework, and scrap.Ch. 18 - Normal spoilage is planned spoilage. Discuss.Ch. 18 - Costs of abnormal spoilage are losses. Explain.Ch. 18 - What has been regarded as normal spoilage in the...Ch. 18 - Units of abnormal spoilage are inferred rather...Ch. 18 - In accounting for spoiled units, we are dealing...Ch. 18 - Total input includes abnormal as well as normal...Ch. 18 - Prob. 18.9QCh. 18 - The unit cost of normal spoilage is the same as...
Ch. 18 - In job costing, the costs of normal spoilage that...Ch. 18 - The costs of rework are always charged to the...Ch. 18 - Abnormal rework costs should be charged to a loss...Ch. 18 - When is a company justified in inventorying scrap?Ch. 18 - How do managers use information about scrap?Ch. 18 - Prob. 18.16ECh. 18 - Prob. 18.17ECh. 18 - Prob. 18.18ECh. 18 - Prob. 18.19ECh. 18 - Prob. 18.20ECh. 18 - Prob. 18.21ECh. 18 - Prob. 18.22ECh. 18 - Prob. 18.23ECh. 18 - Prob. 18.24ECh. 18 - Prob. 18.25ECh. 18 - Prob. 18.26ECh. 18 - Prob. 18.27ECh. 18 - Prob. 18.28ECh. 18 - Prob. 18.29ECh. 18 - Prob. 18.30ECh. 18 - Prob. 18.31PCh. 18 - Prob. 18.32PCh. 18 - Prob. 18.33PCh. 18 - Prob. 18.34PCh. 18 - Prob. 18.35PCh. 18 - Prob. 18.36PCh. 18 - Prob. 18.37PCh. 18 - Prob. 18.38PCh. 18 - Prob. 18.39PCh. 18 - Prob. 18.40PCh. 18 - Weighted-average method, inspection at 80%...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Overhead costs are the source of product cost distortions. Do you agree or disagree? Explain.arrow_forwardWhat advantage does the FIFO cost method have over the average cost method relative to providing information for cost control?arrow_forwardExplain how the high-low method is used for cost estimation. What, if any, are the limitations of this approach to cost estimation?arrow_forward
- When the cost of lost units must be assigned, and those some units must be ignored in an equivalent unit schedule, these units are considered a. normal and discreteb. normal and continuousc. abnormal and discreted. abnormal and continuous (Please give a brief explanation why the answer is correct)arrow_forward1. Differentiate between spoiled and defective material, why costing procedure is different for both?arrow_forwardexplain why actual costing are rarely used in practicearrow_forward
- Why can unitized fixed costs cause errors in decision making?arrow_forwardDiscuss the importance of fixed cost and variable cost with respect to special orders. How might failure to identify a fixed cost impact the decision to accept or reject a special order?arrow_forwardWhich of the following is true of abnormal spoilage? a. It is considered to be part of production. b. It is normally treated as a period cost c. It is normally treated as a product cost. d. It is prorated between cost of goods sold and inventory.arrow_forward
- TRUE OR FALSE When absorption costing is used for external reporting, variable costing can still be used for internal reporting purposes.arrow_forwardA price that can't be quickly or efficiently linked to a cost object is referred to as: Additional charges may apply. The total cost Costs incurred indirectly Cost of conversion.arrow_forwardWhich of the following is an example of a cost item that should be classified as an internal failure cost? Question 11 options: Product return costs Inspection costs Rework costs Employee training costsarrow_forward
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