Which is TRUE about services? a.Services cannot have work-in-process inventories. b.Some services may require that a sequence of uniform processes be performed. c.Services can never be homogeneous and repetitively produced. d.All services require job-order costing.

Q: Which of the following is an example of a cost item that should be classified as an internal failure…

A: This question deals with the cost of quality or quality cost. Cost of quality means a cost which is…

Q: Each of the following statements is true EXCEPT: Select one: a. traditional product costing systems…

A: Traditional  costing system  involves  allocation  of overhead and cost. It is a reactive approach.…

Q: Which of the following statements is false? (You may select more than one answer.)a. Activity-based…

A:

Q: In a process account, abnormal losses are valued: A. at their scrap value. B. the same as good…

A: 1 An odd loss happens whilst anticipated output exceeds real output. 2 The scrap value of an odd…

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 statements is true regarding by products?   a. Process costing is the only…

A: Solution: "Job order costing systems may have instances where by-products result from the production…

Q: se explain the answer thoroughly.  Is this statement "if all the allocation base in the…

A: Allocation base in the predetermined overhead rate is the percentage of overhead which will be…

Q: First: Activity-based management seeks to eliminate waste by allocating costs to products that waste…

A: Solution: First statement is false as "Activity-based management does not seeks to eliminate waste…

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: rch and development costs are ordinarily considered factory related overhead costs true false

A: Research and development costs are the costs that are incurred for the better production of the…

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: Time-driven ABC requires estimates of onl

A: Time-Driven Activity-Based Costing-: Time-driven ABC allows managers to document their expenses on…

Q: WIP may not exist in job order costing, can you expand on that? What are some examples of times that…

A: Job order Costing : It is a method of costing specific jobs which are performed on the instructions…

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: Which of the following is not a distinction between process costing and job order costing? a. Job…

A: Job costing means where actual direct cost is included in specific cost and overhead is applied on…

Q: The three major differences between process and job order costing systems are those relating to:

A: Job Order Costing Process order Costing The Job Order Costing is based upon the manufacturing cost…

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 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: Overhead needs to be allocated only to "jobs" but not to "processes

A: Overheads represents expenditure on labour,materials that cant be economically identified with…

Q: A significant cost of quality that is not recorded in the accounting records is the * failure cost…

A: Opportunity Cost - Opportunity Cost is the cost that would have been incurred if we have decided to…

Q: The average and FIFO process costing methods differ in that the average method: a. Can be used…

A: ANSWER : An average cost method of process costing differs from the FIFO method of process costing…

Q: Under traditional costing systems, which calculate a single predetermined overhead rate using…

A: Under traditional costing systems, which calculate a single predetermined overhead rate using…

Q: Which of the following are true regarding activity-basedcosting? a. A primary goal of using ABC is a…

A: Activity-based costing: It is a method that helps in finding the activities performed by a company…

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: Unit-level measures can distort product costing because the dernand for overhead resources nay be…

A: Product cost or expense can be categorised in very manner like we can take product cost like unit…

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: Activity-based costing a. may not assign all manufacturing overhead costs to products b. uses…

A: Under activity based costing, the overheads are applied to production on the basis of activity base…

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: Preparation of service manual by an electronic manufacturer is an example of A. Unit level activity…

A: In Activity-based costing (ABC) there are mainly four types of activity levels. They are: Unit-level…

Q: 1 Why are top management support and cross-functional involvement crucial when attempting to…

A: Activity based costing is a method of costing that identifies all the activities happening and being…

Q: Which of the following is false when using ABC in a service industry? analyze operations accumulated…

A: ABC (activity-based costing) seems to be an approach for allocating overhead expenses more…

Q: d in the cost of the product b) that it is not really useful for managerial decisions c) that it…

A: A cost accounting system is a system of accounting that is helpful for the internal management to…

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: in a job-order costing system, the recovery value of scrap that is significant in economic value,…

A: in a job-order costing system, the recovery value of scrap that is significant in economic value,…

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: 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: In activity-based costing, some manufacturing costs may be excluded from product costs TRUE FALSE

A: Lets understand the basics. Activity based costing is as the name suggest allocate cost based on the…

Q: Label each item a through e below as a feature of either a job order (J) or process (P) operation.…

A: Job order costing: Job order costing is one of the methods of cost accounting under which cost is…

Q: Which of the following statements is false?   Cost allocations such as activity-based costing allow…

A: Activity-Based Costing: Activity-Based Costing method is generally used to allocate the overhead…

Q: Which of the following statements regarding activity-based costing (ABC) is false?   A.   ABC is…

A: Overheads are the indirect cost involved in the production process of the company. It is charged to…

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: All of the following are reasons to use backflush costing, except Managers tend to use their limited…

A: When the costing is done after completion of production that is known as backflush costing.

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…

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.