Explain why traditional cost allocation methods fail in a computer-integrated manufacturing environment.

Q: Which of the following are features of a lean manufacturing system?A. Centralized maintenance…

A: Lean manufacturing system is a technology in which production process can be streamlined in order to…

Q: What makes the cost-benefit analysis more difficult for information systems than most other…

A: Cost Benefit Analysis: Cost benefit analysis is conducted to determine whether the proposed system…

Q: Some managers believe machine performance is more important in a JIT environment than in a non-JIT…

A:

Q: Why is the output of a JIT system likely to contain fewerdefective units than the output of a…

A:

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

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

Q: Which of the following is a limitation of activity-based costing? More cost pools Poorer management…

A: Introduction: ABC costing also called as Activity based costing. According to the consumption cost…

Q: No single system can adequately answer the demands made by diverse functions of cost systems. While…

A: Describe the costs and benefits of having a single measurement system: Costs: Cost system is a…

Q: Which of the following is false about activity-based costing?   Implementing an activity-based…

A: Activity-Based Costing (ABC): Under activity-based costing the different cost is assigned to a…

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: all of the following are reasons to use backflush costing, except   a. Managers tend to use their…

A: The backflush costing follows the JIT (just-in-time) inventory system which reduces the costs…

Q: When backflush costing is used, managers generally do not use which of the following to keep track…

A: Backflush Costing: Under this system, direct material expenditure incurred in the production…

Q: Which of the following is NOT a problem associated with standard cost accounting? a. Standard…

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Q: It is ridiculous to suggest that process costing may also be suited to service firms, as services…

A: Process Costing:   It is a method of cost accounting where manufacturing costs are collected and…

Q: A possible disadvantage of the ABC method is: (a) It does not allocate costs to the way production…

A: Definition:   Activity-based method (ABC): The costing method which allocates overheads to the…

Q: Which is a disadvantage of an enterprise resource planning (ERP) system? a. Helps companies adjust…

A: Disadvantages of ERP: Changes to business process Complexity cost

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: The flow of goods through a production process cannot be at a faster rate than the slowest…

A: The Theory of Constraints is a method for determining the most significant limiting factor (i.e.,…

Q: Which is a disadvantage of an enterprise resource planning (ERP) system? Helps companies adjust to…

A: Enterprise resource planning: It is a process that integrates different areas of the organization…

Q: When a traditional, volume-based costing system is used, which of the following products is most…

A: Traditional costing is the allocation of factory overhead to products based on the volume of…

Q: Do you think transaction processing systems differ significantly between service and manufacturing…

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Q: Which of the following statements is TRUE about designing, creating, and implementing a new business…

A: Creating a new process or workflow from scratch is called as new business process. It’s dissimilar…

Q: Which costing system would be more efficient when direct materials and direct labor costs are high,…

A: There are mainly two types costing method Traditional costing Activity based costing

Q: Why do product costing systems using a single, volume-based cost driver tend to overcost highvolume…

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

Q: Why is it important to consider workforce capability and capacity in designing and sustaining high…

A: Workforce capability refers to the ability of an organization to accomplish its goals such as…

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: Discuss how traditional methods of allocating overhead to products may not provide a good measure of…

A: The overhead costs are allocated to production using various methods as traditional costing and…

Q: Discuss how an emphasis on financial performance of cost centers, as measured by traditional cost…

A: Cost Accounting System:   Cost accounting system can be defined as a framework designed by the…

Q: What are the primary goals of lean manufacturing?

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Q: What is the best rationale for why many companies use a hybrid costing system? O Job order costing…

A: Costing Accounting- Cost accounting is a systematic accounting method that reports and records all…

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

A: Here is the Answer

Q: How are cost structures fundamentally different between the traditional and computer-integrated…

A: Sales order starts the manufacturing process under a traditional manufacturing environment. The…

Q: . As more warehouses are added to the system, what would we expect to happen to thefollowing?a.…

A: Warehousing : Warehouse is place where the goods that need to be sold or distributed later are need…

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: What issues are accountants concerned with when determining their preference for CASE tools that…

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Q: What are enterprise systems? How do they change the way an organization work? List down few Costs &…

A: The Enterprise System is a collection of linked software modules and a central database that allows…

Q: How does automation help achieve manufacturing flexibility?

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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 kinds of challenges occurs in the Cost Control and Cost Reduction in the Manufacturing conce

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

Q: Disadvantages of activity-based costing include which of the following? a. It is not acceptable…

A: Answer; d. Both a. and b.

Q: Which of the following statements is not false of costing​ systems?   A. ​Activity-based costing…

A: Introduction: Traditional costing is the more simplest method which typically delivers less accuracy…

Q: An engineering company is looking for a software solution to manage their inventory and…

A: Inventory refers to the items, materials or merchandise and any type of goods which are sold by the…

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.