Which of the following is NOT a period cost? Select one: O a. manufacturing costs. O b. general and administrative costs. Oc. marketing costs. O d. research and development costs.
Q: Which of the following is the best definition of product costs? a. Product costs are those costs…
A: Cost refers to amount or value which has to be incurred in order to purchase or produce a product…
Q: Distinguish between Period cost and Product cost? Give two examples of each cos
A: Classification of costs on the basis of functions:- 1. Product Cost 2. Period Cost
Q: A traditional income statement classifies costs by function; costs are classified as either product…
A: The question is related to Classification of cost. The traditional income statement classifies costs…
Q: Identify the two types of costs that make upa product’s total cost.
A: Product costs are costs that are incurred to form a product that's supposed available to customers.…
Q: Which one of the following is a fixed cost? a. Raw material costs b. Salary with commission c.…
A: A fixed cost is one that does not adjust in the short term, even though a company's sales volume or…
Q: Which of the following does NOT form a part of Total cost? A. Production overheads B. Factory…
A: Total cost involves all the cost incurred in order to reach a particular level of output.
Q: Marginal Costing
A: Option a is wrong because marginal costing is not a technique of cost reduction. Cost reduction…
Q: Which of the following best describes a fixed cost? a. Cost representing a fixed proportion of…
A: Fixed Cost: It is a cost that does not change with the change in the level of output. It is the…
Q: Why are product costs sometimes called inventoriable costs? Describe the flow of such costs ina…
A: Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare the…
Q: are all manufacturing costs that are related to the cost object but CANNOT be traced to that cost…
A: The costs which are not directly related to production process are called Period costs.These are not…
Q: Terms used in manufacturing cost systems are: manufacturing costs prime costs conversion costs both…
A: Manufacturing cost refers to the total cost incurred by the entity to manufacture a product. It…
Q: When materials and supplies are used in a product that will be sold to customers, the usage of the…
A: The answer for the multiple choice question and relevant explanation are presented hereunder :…
Q: The term relevant range in cost accounting means the range over which a. Cost may fluctuate. b. Cost…
A: Cost accounting is that branch of accounting in which all costs incurred on manufacturing and…
Q: Which of the following statements is true? * O a. A common cost is one type of direct cost. O b. A…
A: The question is related to Choose which of the statement is true.
Q: Which of the following is correct for total cost of product ? Material + Labor + FOH…
A: Total cost of product : Total cost is derived by adding costs of Material , Labor and Factory…
Q: The marginal cost is: Select one: a. Is the incremental cost of an activity, such as producing a…
A: Marginal cost refers to the additional cost.
Q: Explain the difference between period costs and product costs.
A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other…
Q: Please explain the statement below (T/F) thoroughly with examples illustrating the answer. "In…
A: in Activity-based costing many numbers of cost pools. In activity-based costing, a product margin…
Q: Research and development activities may include (a) personnel costs, (b) materials and equipment…
A: Research and development cost: These are the cost that is incurred on the research for producing the…
Q: Define the following concepts: a)Prime cost b) Non production cost c)Total cost
A: Cost is the monetary value of expenditures for raw materials, technology, supplies, services, labor,…
Q: Which one of the following are NOT period costs? a) Advertising costs. b) Indirect materials.…
A: Product cost are the costs that are directly or indirectly related to production. Direct Costs…
Q: Which of the following is not considered a product cost? Select one: a. direct labor b. direct…
A: Product cost includes all the cost incurred to manufacture the product.
Q: In CVP Analysis, total costs are defined as costs derived from product costs and period costs. TRUE…
A: Cost-volume-profit analysis is used to determine how the company's profit has been affected due to…
Q: 1. Classify the costs in the items below using the following format below. Identify the right answer…
A: The costs are classified as direct, indirect, and other factory overhead costs, selling and…
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: Which of the following statements is true? * A. The traditional approach to costing uses many…
A: Cost accounting is one of the branches of accounting. Under this, all costs related to the product…
Q: 1-Why is it important to distinguish cost incurrence from locked-in cost? 2- How do companies…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Which of the following statements is true? (You may select more than one answer.)a. A common cost is…
A: Opportunity cost is the value of the next best alternative over the selected alternative.The loss of…
Q: Which of the following is a costing method? O a. a. Target Costing O b. Standard Costing c. Marginal…
A: Solution: "Job costing" is a costing method. This is because main costing methods include job…
Q: Activity based costing system differs from traditional costing systems in the treatment of, A)…
A: Direct costs are the cost that can be traced on the process and production of goods.
Q: Identify whether each of the following costs should be classified as product costs or period costs.…
A: Product Costs: Product Costs means the direct costs incurrend for production of a product. Product…
Q: Can you label revenue, loss, total costs, dollars, variable cost, and fixed cost on the provided…
A: Cost Volume Profit Analysis (CVP Analysis): This analysis is helpful in determining how any type of…
Q: (a) Explain the difference between the throughput and absorption costing methods.
A: "Since you have asked multiple questions, we will solve only first question for you. If you want any…
Q: Prime cost is? A)Group of answer choices B)indirect materials cost and direct labor cost.…
A: Prime cost refers to the cost related to direct labour and direct material For example in the…
Q: Which of the following statements is TRUE? a. Batch cost shall be the cost of production or…
A: Solution: Statement A= false Because Process costing shall be the cost of production or operation…
Q: Identify on which financial statement these costs originally appear. ✓ Period Costs ✓ Product Costs…
A:
Q: h of the following is the format of the income statement that is MOST useful in decision-making?…
A: Solution: For the purpose of decision making, we need to have comparison of relevant revenues and…
Q: Which of the following is not a manufacturing cost category? a)Cost of goods sold b)Direct materials…
A: MANUFACTURING COSTS INCLUDE - - direct material - direct labor - manufacturing overheads.
Q: With respect to cost classifications for manufacturers:a. What is the total manufacturing cost?b.…
A: For a manufacturer, Total manufacturing cost = Direct Material Cost + Direct Labour Cost + Variable…
Q: Describe different types of cost behavior in relation to production and sales volume.
A: Introduction: Cost behavior: Cost behavior refers to the indicator that reflects the information…
Q: Which of the following is NOT correct about the classifications of costs? Select one: a. On the…
A: Costs in the business can be classified into different types like on the basis of time, on the basis…
Q: A 'product' cost is a cost that is classified by: a. behavior b. function c.…
A: The cost incurred on production directly or indirectly related to production is said to be product…
Q: Which of the following statements is true? (You may select more than one answer.)a. Conversion costs…
A:
Q: When pricing a product or service, managers must consider which of the following? a. Only period…
A:
Q: Please answer the following: 1. What is cost of production report? 2. What is cost per equivalent…
A: Since you have posted a question with multiple subparts, we have solved the first three subparts for…
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- Which of the following is not one of the five steps in decision-making process? A. identify alternatives B. review, analyze, and evaluate decision C. decide best action D. consult with CFO concerning variable costsAnswer the following questions in multiple-choice answers: 1. The book value of the equipment currently owned by a firm is an example of a(n): a. future cost. b. differential cost. c. comparative cost. d. opportunity cost. e. sunk cost. 2. An accounting information system should be designed to provide information that is useful. To be useful the information must be: a. qualitative rather than quantitative. b. unique and unavailable through other sources. c. historical in nature and not purport to predict the future. d. marginal between two alternatives. e. relevant, accurate, and timely. 3. Factors in a decision problem that cannot be expressed in numerical terms are: a. qualitative in nature. b. quantitative in nature. c. predictive in nature. d. sensitive in nature. e. uncertain in nature. 4. An opportunity cost may be described as: a. a foregone benefit. b. a historical cost. c. a specialized…Which objective of cost accounting classifies and analyzes cost date for measuring efficiency? a. Guide to business policy b. Determination of selling price c. Cost control and reduction d. Measuring and improving performance
- 22) Which one of these is not an objective of cost accounting? a. Assisting shareholders in decision making b. Determination of selling price c. Cost control and reduction d. Ascertainment of costWhich of the following is not an application of cost-volume-profit analysis? Setting prices for products and services. Performing strategic “what-if” analyses. Deciding whether to cut a product line. Determining the short-term cost or profit implications of many decisions. Deciding whether to make or buy a given product or service.Which of the following choices correctly denotes factors that can influence a company's pricing practices for goods and services? Market Customer Conditions Costs Demand A. No Yes Yes B. No Yes No C. Yes Yes Yes D. Yes Yes No E. Yes No Yes Select one: a. Choice A b. Choice B C. Choice C Choice D Choice E d. e.
- Which of the following costs are irrelevant to business decisions? a. Avoidable costs b. Costs that differ between alternatives c. Sunk costs d. Variable costsProfitability, customer satisfaction, or employee satisfaction are examples of: a. Association b. Data Exploration c. Cause-and-effect d. None of the aboveWhich is not an objective of managerial accounting?a. To prepare external reports for investors, creditors, government agencies, and other outside users.b. To provide information for costing of services, products, and other objects of interest to management.c. To provide information for planning, controlling, evaluating and continuous improvement.d, To provide information for decision making.e. Answer not give
- Which of the following is NOT one of the definitions of "Cost" concept? Select one: a. Cost means economic sacrifice, measured in terms of standard monetary unit, incurred or potentially to be incurred, as a consequence of a business decision to achieve a specific objective b. Cost is the amount of expenditure (actual or notional) incurred or attributable to a given thing c. Cost refers only to the cash paid for purchasing an item. d. Cost is a measurement, in monetary terms, of the amount of resources used for the purpose of production of goods or rendering servicesВ. Explain the following: Product costs and Period costs and one example of each. Distinguish clearly between Financial Accounting and Management Accounting under 3 (THREE) different factors, which are: i. Stakeholders, ii. Time frame and iii. Regulations. С. Before calculating costs we need to understand how different costs behave. In cost accounting we typically classify costs by three types of behaviour: Fixed costs - costs which don't change as the activity level changes Variable costs - costs which change in direct proportion to changes in the activity level Semi-variable costs- costs which have both fixed and variable elements. Explain the purpose classifying costs into the behavior patterns. D.Which format of the Income Statement is appropriate for financial reporting? O Variable costing O Activity-based O Absorption O any format is fine for financial reporting