List at least two positive and two negative features of standard costing systems.

Q: What type of cost drivers do modern costing systems use and how does it differ from the cost drivers…

A: Cost Driver Business activities are  influenced by a cost driver . Cost drivers are the factors…

Q: After understanding and studying Standard Costing: 1. Which of the following management function is…

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

Q: “The standard –costing method is particularly applicable to process-costing situations.”Do you…

A: Yes, the standard-cost procedures are particularly suitable for costing systems where there are…

Q: discuss the various costing methods?

A: Various Methods of costing are as follows: 1) Unit Costing 2) Operating Costing 3) Contract Costing…

Q: Which of the following represent the right process order for cost allocation: Select one: O a.…

A: Cost Allocation is the process of identifying and assigning costs to the various cost objects. These…

Q: TRUE OR FALSE A cost function is useful only in an activity-based costing system.

A: Answer:   A cost function is useful only in an activity-based costing system.     The statement…

Q: How do you prepare an absorption and variable costing income statement show a draft or format only.

A: An income statement is prepared by the organization to measure the revenues generated during the…

Q: Which of the following is the proper sequence of events in an activity-based costing system? A.…

A: Activity-Based Costing or ABC is a managerial accounting method that assigns certain indirect…

Q: Explain any TWO advantages and TWO disadvantages of standard costing analysis

A: Standard costing is the way to allocate the costs to the activities like for materials, labor or…

Q: Explain the differences of single overhead rate; multiple overhead rate and activity based costing.…

A: Single, multiple overhead rate and activity based costing are methods to allocate cost to the…

Q: Explain the similarities between ABC and traditional costing .

A: Traditional Costing is the method of allocation of cost based on a single cost driver; whereas under…

Q: List seven criticisms of standard costing in an advanced manufacturing environment.

A: Standard cost: In the accounting records, the term standard cost refers to the practice of…

Q: Discuss the disadvantages of activity-based costing.

A: Activity Based Costing: The approach of activity based costing keeps the record of resources usage…

Q: In a homogeneous cost pool, all costs have a similar cause-and-effect relationship with the cost-…

A: The homogeneous cost pool is a collection of different costs whose changes are based on single base.…

Q: Explain how far you agree that the Activity-Based-Costing system is a superior model compared to the…

A: Cost accounting is considered as a process that is followed by a business to estimate the total cost…

Q: Describe ABC Required: a What is activity-based costing and how does it differ from traditional…

A: SOLUTION- Activity-based costing and traditional absorption costing are the two different approaches…

Q: TRUE OR FALSE The last step in activity-based costing system is the selection of cost driver

A: Cost driver is used to compute the overhead rate per cost driver.

Q: How do the cost flows in backflush costing systems differ from those in traditional costing systems?

A:

Q: Which of the following statement about Activity Based Costing is true? a)  Costs which change with…

A: In the activity level costing the indirect cost is allocated on the basis of their activity. for…

Q: Absorption Costing approach

A: Absorption costing refers to method of accounting in which the cost of manufacturing are absorbed by…

Q: List three factors that are important in selecting cost drivers for an ABC system.

A: Cost driver: It is one of the measurements that help the company in tracing directly the number of…

Q: Describe ABC Required: a. What is activity-based costing and how does it differ from traditional…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: All of the following are names for the product costing method in which both fixed and variable costs…

A: Cost can be defined as the amount of value of work incurred for the performance of services or for…

Q: List at least two positive and two negative features of stand costing systems

A: Standard costing system is mostly prevalent in manufacturing companies. Under standard costing…

Q: Which of the following is not an objective of product costing systems? a. To assist in the…

A: Product costing refers to the total amount of total costs allocated to a specific product on the…

Q: What is the difference between a structural cost driver and an executional cost driver? Provide…

A: Cost driver: cost driver is a particular unit or specific activity that is responsible for a change…

Q: What are the key reasons for product cost differences between simple costing systems and ABC…

A: Simple costing method is a traditional costing method under which indirect costs are assigned to…

Q: Compare actual and normal costing. What is the benefit of each? What is a circumstance in which each…

A: Actual Costing: Actual costing is a cost bookkeeping framework that utilizes genuine cost,…

Q: What are the four components of target costing? Why areeach of these components important for target…

A:

Q: Define normal costing

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

Q: How are the current practices of life cycle costing and target costing in cost management different…

A: The target costing is inferred by deducting the overall revenue from the market selling value, that…

Q: Distinguish between actual costing and normal costing.

A: Actual Costing: Actual costing is a method of cost accounting that records the cost on the actual…

Q: List three methods to measure cost behavior.

A:

Q: What is standard cost ? Explain four purposes of standard costing.    NB: This concept should be in…

A: Solution:- Standard cost means as follows under:-

Q: Discuss the basic difference between absorption costing and variable costing from a product-costing…

A: It is a technique of costing wherein: All variable manufacturing costs ( like direct material,…

Q: Describe how process costing is different than job costing and identify at least three differences.

A: Job Costing - It involves customized contracts in which cost for these contracts are calculated and…

Q: ritically discuss the many different purposes of a standard costing system

A: Standard costing Standard costing compares the standard prices and revenues with the actual results…

Q: Explain briefly why plant-wide, department, and activity-based costing systems show different costs…

A: Plant-wide: Under the plant-wide system, a single rate is used to allocate or assign entire…

Q: Describe three criteria for evaluating cost functions and choosing cost drivers.

A: Cost Function:   Cost function represents the basic change comes in the total cost due to the change…

Q: Please briefly describe (1) the three main differences between the traditional overhead allocation…

A: Overhead refers to the number of indirect expenses incurred during the production of products in the…

Q: Explain briefly the issues with Activity Based Costing

A: Activity based costing is a costing system in which indirect costs which are also known as overhead…

Q: Describe three guidelines for costing system refinement.?

A: Definition:   Cost system refinement: Cost system refinement associates the overhead cost of…

Q: Specify the advantage of the weighted-average method of process costing in contrast to the FIFO…

A: Process Costing: Process costing is a costing system of accounting methodology that accumulates…

Q: Contrast the productcosts computed under activitybased costing and conventionalcosting methods

A: ABC Costing: The Activity-Based costing system is a way of assigning a cost to the product and…

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.