Why are cost centers considered to be more appropriate than profit centers for production departments?

Q: A very key concept in managerial accounting is how costs "behave", either fixed or variable. Once we…

A: Fixed Cost: These are costs that will remain the same irrespective of production or number of units…

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: How should a company decide on the number of cost pools it should use to allocate costs to…

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

Q: Explain the Role of environmental costing in improving organisational performance

A: Environmental Costing is an important tool for understanding the role played by the Natural…

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: 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: When it comes to cost behavior,

A: Cost Behavior is that the amendment within the behavior of a price (or costs) thanks to a amendment…

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 variable costing income statement be used in manufacturing enterprises?

A: In a Variable costing income statement, all variable costs are deducted from the sales, to compute…

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

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

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Q: Describe the concept of management by exception and explain how standard costs help managers apply…

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Q: What is the typical focus of responsibility reports for cost centers, revenue centers, and profit…

A: Responsibility Centre:   A responsibility centre is used to show the financial performance of all…

Q: What is the nature of cost management and how beneficial it is for the business?

A: Introduction:   Cost management is the process of planning and controlling a business's running…

Q: How to allocate indirect costs to multiple departments using an ABC costing driver?

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

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

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Q: Using a CPA firm to represent the service industry, discuss how activity-based costing could be used…

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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: Which of the following is correct? * . O The direct cost of a particular department is always a…

A: Responsibility accounting system means that where one manager is given the whole responsibility of…

Q: How would a knowledge of cost behavior patterns such as those above be of help to a manager in…

A: The question is based on the concept of cost determination and the behaviour in the cost budget. A…

Q: Who in the typical firm or organization is responsiblefor cost management?

A: Cost Management:   Cost management involves the development and use of cost management information…

Q: Why would a company choose to use activity based costing vs the single department method or the…

A: Activity-based costing: Activity-based costing is commonly known as ABC. It is a costing method that…

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: s it true that the direct method is a method of cost allocation that charges costs of service…

A: Direct Method- Direct method refers to the method under which the cost of the service department is…

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: What is the strategic role of a costing system?

A: Introduction: A costing program is designed to tract the costs a company have incurred. The system…

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

A: Here is the Answer

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: Describe how product cost informationis used by managers to identify cost improvement opportunities?

A: Product Cost: The phrase "product cost" is an accounting word that refers to the overall expenses…

Q: How to allocate indirect costs to multiple departments using an ABC cost driver?

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

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: How Absorption and Variable Costing, Budgeting and Responsibility Accounting are connected?

A: Answer: Absorption and Variable Costing, Budgeting and Responsibility Accounting  There is…

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 company circumstances especially encourage use of activity-based costing?

A: Activity based costing helps in assignment of indirect costs and overheads that helps companies in…

Q: Why is target costing most effectively applied at the researchand development and production process…

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Q: How is the concept of product costing applied in service industry firms?

A: product costing: It is the method of allocating direct and indirect costs to units of products…