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

Q: Why are support department costs difficult to apply to products?

A: Given: The difficulty in applying the support department costs on products.

Q: For what decisions is the manager of a cost center not responsible?

A: Responsibility of Cost Centre Manager The main responsibility of the cost center managers to…

Q: When deciding whether to sell as is or process a product further, managers should ignore which of…

A:

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: What are the similarities in calculating the cost of materials used in production, the cost of goods…

A: Cost of the materials used in production: This is the additional amount of material put in the…

Q: Explain why is important for a business to understand their composite mix of products when…

A: Sales mix is the proportion of sales in quantity with respect to total sales quantity. It is…

Q: What real-world company do you think would use activity-based costing?  Why?

A: Activity-based costing is a method that is used to identify the activities in an entity and assigns…

Q: Why do engineers need cost data?

A: The question is based on the concept of cost in engineering projects.

Q: Explain the term supply chain and its importance to cost management?

A: Supply chain is a network of different activities, steps, processes, people, resources and…

Q: What questions should managers answer when considering selling a product as is or processing…

A: Sell or process further decision rule: Sell or process further decision rule states that "if the…

Q: Why is manufacturing overhead applied to products when product costs are used in making pricing…

A: Definition: Manufacturing Overheads: The cost which is indirectly related to the production is known…

Q: Whose job is it to refine a costing system?

A: The costing system is designed for monitoring the cost incurred in different activities by an…

Q: 1. Why do entrepreneurs need to consider the credibility of suppliers in choosing suppliers of raw…

A: Credibility of Suppliers is one of the key considerations for choosing suppliers.  Credible…

Q: Why should managers worry about product overcosting or undercosting?

A: A product is said to be over costing when it consumes low level of resources but is reported to have…

Q: What is standard costing, and when is it used? Give an example of a well-known company that you…

A: Standard Costing:   It is an accounting system that is used by organization to identify the…

Q: Why is it important to know the true cost for a product or service?

A: True Cost and its importance The meaning of true cost is simple term is the the distinguish between…

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: What kinds of challenges occurs in the Cost Control and Cost Reduction in the Manufacturing…

A: Cost Control is different from cost reduction Cost Control focuses/emphasises on decreasing the…

Q: How are passion, consciousness, and product quality part of the product management process at…

A:

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: 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: What is product costs? Give an example?

A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other…

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: Which of the following is NOT a reason for companies to assign costs to products or services? O to…

A: Generally companies will asign costs to products and services for decision making purpose

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: How can poor quality be expensive to the firm, especially if low-cost raw materials are used to…

A: The final objective of Cost Accounting is to reduce cost. Every firm wants to reduce cost thereby…

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

A: The company's motive will be to increase the profitability. The profitability of the company can be…

Q: How may managers at EY Australia and Unilever benefit from the activity-based cost information?

A: Activity costing is a way of attributing the company's overhead and other indirect expenses to its…

Q: Explain Consumer Behaviour and  Costs.

A: Behaviour is the way in which one acts or conducts oneself, especially towards others.

Q: Do starting entrepreneurs need to have basic knowledge about cost volume profit analysis?

A: Cost volume profit analysis is also known as "Break-Even" analysis. This is an important aspect of…

Q: What are the pros/cons of product costing allocation methods and how they influence distortion of…

A: Product costing allocation methods are used to assign or allocate a cost to manufactured/produced…

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: What are product costs?

A: Product costs refer to the costs incurred by a business from manufacturing a product or providing a…

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: What considerations should managers make when deciding whether to sell a product as-is or after…

A: One of the decisions related to the product is to sell or process further. There are certain factors…

Q: What are the different purposes for which we measure product costs?

A: Product cost: Product cost is the cost incurred to manufacture a product, it includes the material…

Q: How do companies determine target costs?

A: Identify the selling price using the market competitor.