Why are support department costs difficult to apply to products?

Q: What qualities of a product have an effect on logistical costs? Examine the influence that these…

A: Logistics is one of the vital part of the supply chain management that has direct relations with the…

Q: Explain how nonuniform inputs and multiple departments affect process co

A: Solution Concept Process costing is a method of costing where the production process is carried out…

Q: Define value engineering. How is it used to control costs?

A: Value engineering also called value analysis refers to the process of increasing quality of the…

Q: Explain the Over head cost control  benefits and drawbacks in manufacturing unit.

A: Cost accounting: A branch of accounting that deals with the calculation of the total cost incurred…

Q: Which of the following is not a feature of a process production system?  Repetitive production…

A: Production process system is that which is used for a large level of production and where continuous…

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: Explain why standard costing is more suitable for controlling the cost of unit-level activities

A: Standard costing is a cost accounting method in which predetermined levels of sales, production,…

Q: 1. What types of costs are allocated? What is a support department? What is a producing department?…

A: Allocation refers to distribution of total overhead cost to the departments that have actually used…

Q: How can activity-based costing be used to switch the management of business activities from a…

A:

Q: 1. Explain the role of activity drivers in assigning costs to products.

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

Q: What is the danger in allocating common fixed costs among products or other segments of an…

A: The costs which are not allocated to any specific segment in the business organization are called…

Q: What are the major limitations of activity-based costing?

A:

Q: Explain why knowledge of cost behavior is useful in product performance evaluation.

A: Definition: Product performance: Product performance indicates how well the product is flourishing…

Q: What are the limitations of joint product and departmental cost allocation?

A: The limitations of joint product and departmental cost allocation.

Q: What makes POS systems different from revenue cycles of manufacturing firms?

A: POS System:   It is a system implemented in rattail sectors where the sale transaction taking place…

Q: How does the adoption of a JIT approach to manufacturing affect process costing?

A: Introduction: JIT (JUST IN TIME); In a just-in-time (JIT) inventory control system, products are…

Q: Is it possible to have under- or overapplied overhead costs in a process costing system? Explain.

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

Q: Are activity-based costing systems appropriate for the service industry? Explain.

A:

Q: Which of the following is most likely to be true of the manufacturing overhead costs assigned to a…

A: Answer: Option (a) is the correct answer. An ABC system will assign more manufacturing overhead…

Q: What types of costs should not be assigned to products in an activity-based costing system?

A: Activity-based Costing Activity-based costing is a method of costing which identifies the activities…

Q: How does lean manufacturing differ from the conventional manufacturing process?

A: Lean ManufacturingThe main objective of lean manufacturing is to yield products with high quality,…

Q: Why do departmental overhead rates sometimes result in inaccurate product costs?

A:

Q: How can variable costing be used in service companies?

A: Variable Costing: The variable costing is the method of costing in which only the variable…

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 to solve plantwide overhead rate versus departmental rates, effects on pricing decisions?

A: Since there are multiple sub parts in the question, calculation will be given for first three sub…

Q: Describe the difference between direct and step-down methods to allocate service department costs to…

A: Service departments are those department which provides services to other departments like other…

Q: How does standard costing improves the control function

A: The standard costing technique is the one that is used for making comparisons between the actual and…

Q: explain why actual costing are rarely used in practice

A: Actual costing is a type of costing in which all costs that are incurred actually are considered for…

Q: Do the engineering decisions account for the majority of product costs?

A: Yes, engineering decisions will account for the majority of the cost of the product. The main task…

Q: What is cost stickiness? Why do managers need to be aware of cost stickiness?

A:

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: Explain the relationship between customer profitability analysis and activity-based costing.

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

A: Here is the Answer

Q: Explain why some production costs must be assigned to products through an allocation process.

A: Production costs: These are the costs incurred on product manufacturing or delivering services by…

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: why service industry not involved production cost and retail industry involve in production cost?

A: In the method of Job costing a particular service is obtained by allocating costs to a distinct…

Q: ?Which of the following costs is not related to a batch-related activity .Compliance costs .a…

A: A batch-related activity refers to the activity that is carried out in batches of units. There are a…

Q: true (T) or false (F) Service companies are not able to use process costing.

A:

Q: Explain why traditional cost allocation methods fail in a computer-integrated manufacturing…

A:

Q: Service departments are sometimes called indeterminate cost centers, while production departments…

A: Many firms need support activities also as core activities to provide their product and/or services.…

Q: What is the difference between cost leadership and product differentiation?

A: Cost leadership is a one of the effective marketing strategies. Despite being highly effective in…

Q: How can you reduce the risks involved in a job costing?

A: Job costing It refers to the accounting of maintaining the costs and the profitability for a…

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.