se explain the answer thoroughly.  Is this statement "if all the allocation base in the predetermined overhead rate does not drive overhead costs, it will nevertheless provide reasonably accurate unit product costs because of the averaging process." same as this "If the allocation base does not drive the cost of overhead, overhead cost averaging will yield reasonably accurate unit product costs."?  If yes, please let me

Q: explain why GAAP requires full absorption costing (instead of variable costing) if absorption…

A: Introduction:- i)Absorption costing:- Under the absorption costing, The following costs included in…

Q: Comment on the problems that may follow from a decision to increase the overhead absorption rate in…

A: Cost-plus pricing is similar to the romance story genre in that it is often mocked while yet being…

Q: Which of the following is false about actual overhead while using normal costing?

A: In  normal cost system, Unit cost is determined  by adding actual direct materials, actual direct…

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: What is the basic difference between absorption costing and variable costing?   What are the…

A: Product costs are those kinds of costs which is related to the procedure of production directly like…

Q: A downside to absorption casting is: A. not including fixed manufacturing overhead in the cost of…

A: Absorption costing demonstrates that all the expenses related to manufacturing a product are…

Q: Possible terms: Activity-Based Costing Appraisal or Inspection Costs Batch-Level Activities…

A:

Q: Which of the following statements is false ? a. Volume-based costing has typically resulted in…

A: There are two methods of costing that are in place generally. One is volume based costing and other…

Q: On the cost reconciliation part of the production report, the weighted-average method treats…

A: Periodic inventory system: The method or system of recording the transactions related to inventory…

Q: Explain why a costing system that uses a volume-based rate is likely to produce distorted…

A: A traditional volume-based cost allocation systems that use only drivers tend to vary directly with…

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 comparing absorption costing to variable costing, all of the below are disadvantages of…

A: Solution: When comparing absorption costing to variable costing, all of the below are disadvantages…

Q: Under-allocated manufacturing overhead costs are always the result of which of the following…

A: Under Allocated manufacturing overhead occurs when Applied overhead are less than the actual…

Q: Which one of the following is not correct about variable costing systems? Select one: O a. Focuses…

A: Variable costing: Under this method refers to the cost technique under which only variable costs are…

Q: . If the coefficient of correlation for machine hours is higher than the coefficient of correlation…

A: The coefficient of correlation is a measure that calculates the relationship between two variables.…

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: 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 of the following statements is false Activity-based costing typically provides less…

A: In order to solve in this question, we need to analyse the given statement one-by-one.

Q: Which of the following statement is true under the Standared Costing System a. Standard cost is a…

A: Solution: Standard costing system is the system of cost estimation in the manufacturing process. It…

Q: One disadvantage of activity-based costing is that it cannot be used for external reporting. This is…

A: Introduction Activity based Costing (ABC) is a method of assignment of overhead costs to the…

Q: Demonstrate why expressing fixed costs on a per unit of activity basis is misleading and may result…

A: Companies can have two types of costs, fixed costs and variable costs, which together result in…

Q: Which of the following is FALSE regarding Variable Costing? O A. Net income will only change if the…

A: Variable costing is a technique of cost accounting where the fixed overheads are not included in the…

Q: TRUE OR FALSE In activity-based costing systems, costs are not classified as either direct or…

A: Answer:   In activity-based costing systems, costs are not classified as either direct or indirect…

Q: Of the following systems, which one is most likely to reduce cost distortion to a minimum?…

A: SOLUTION- ACTIVITY BASED COSTING- IT IS METHOD OF ALLOCATING THE COSTS TO THE ACTIVITIES INVOLVING…

Q: Do you agree with the following statements? Check only those with which you agree. Check All That…

A: Variable Costing refers to those costs which are directly related to the production and changes with…

Q: Which of the following statements is not true regarding the use of variable and absorption costing…

A: Absorption costing: It refers to the method of product costing in which the price of the product is…

Q: CLEAR MY CHOICE Which of the following statements is false? O a. Volume-based costing has typically…

A: Volume based costing and activity based costing are two type of costing methods that are used for…

Q: One disadvantage of activity-based costing is that it cannot be used for external reporting. This is…

A: ABC or Activity based costing is a technique in which various cost divers are used to calculate the…

Q: Please explain step by step how to solve the question for cost allocation by using the double…

A: Cost allocation is the as the name suggests the allocation or in other words, the distribution of…

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: A basic belief of variable costing is that period costs should be currently expensed. What is the…

A: A variable cost is one of the important method related to costing. Basically it is a expense of a…

Q: tatement is true or false, and correct the false tatement(s): Manufacturing cost is called period…

A: Manufacturing cost is the cost incurred to manufacture units . It includes direct material , direct…

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: Which among the following is not true about traditional costing system? a. This method allocates…

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

Q: Which of the following statements is not true regarding the use of variable and absorption costing…

A: Answer:   Option d.

Q: Which of the following is FALSE regarding Variable Costing? A. Net income will only change if the…

A: Variable costing is a cost concept in managerial accounting. In Variable costing, all variable costs…

Q: Marginal costing is a technique that distinguishes between variable costs and fixed costs. In this…

A: Cost-volume-profit (CVP) analysis is an important and systematic method that provides useful…

Q: A basic tenet of variable costing is that period costs should be currently expensed. What is the…

A: Variable costs are those costs which changes with change in level of activity. Under variable…

Q: Which one of the following is correct about variable costing systems? Select one: a. Normally result…

A: Under the variable costing system, the product cost includes direct material, direct labor, direct…

Q: its own predetermined variable overhead criterion.

A: Please find the answer to the above question below:

Q: Can you give us the actual formula for determining the overhead rate and not just the two components…

A: Overhead cost: These are the operating expenses of the business, which cannot be linked directly…

Q: TRUE OR FALSE Companies that use just-in-time processing techniques will have significant…

A: A just-in-time inventory system is an inventory management system wherein the company makes the…

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

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

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.