Do the engineering decisions account for the majority of product costs?

Q: Explain the Problems in Cost Accounting Measurements?

A:

Q: Why is it that product costs are distinguished from period costs?

A: Product cost is the cost that is incurred to manufacture the product. The product cost will include…

Q: What is the most important purpose of the cost of production report?

A: Process costs It is a method of cost accounting, which is used where the production is continuous,…

Q: Explain why standard costing is more suitable for controlling the cost of unit-level activities

A: Standard costing is a cost accounting method in which predetermined levels of sales, production,…

Q: Identify the flow of cost in manufacturing firm step by step and how it is related to prime costand…

A: Costs Cost is the amount expended on any particular product or amount related to a specific product.…

Q: What is a cost of production report and what information does it show?

A: Production means conversion of raw materials into finished goods and the process involved is…

Q: Why do engineers need cost data?

A: The question is based on the concept of cost in engineering projects.

Q: How does the adoption of a JIT approach to manufacturing affect process costing?

A: Introduction: JIT (JUST IN TIME); In a just-in-time (JIT) inventory control system, products are…

Q: Explain Classifying Costs for Manufacturing Environments?

A: The costs are classified in the manufacturing environment as follows: Based on nature: Direct…

Q: Define manufacturing overhead costs with an example?

A: All manufacturing costs that are related to the production cost, but that is not directly related…

Q: What are the differences between cost accounting and cost management?

A: Cost Accounting: Cost accounting refers that branch of accounting, which records and analyzes the…

Q: What are the arguments in favor of treating fixed manufacturing overhead costs as product costs?

A: Following are the arguments in treating fixed manufacturing overhead costs as product costs: For…

Q: Draw a diagram illustrating how direct. indirect, sales and administration costs contribute to the…

A: Product Costs are those costs which are required to form or make or manufacture the product. There…

Q: What costs are incurred when making a product? How are they recorded when incurred?

A: Cost to create a product is know as product cost. These cost include all direct cost like direct…

Q: define direct manufacturing-labor costs?

A: Cost: It refers to the economic value incurred by a company to produce a product or deliver a…

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: re the difference between traditional product costs and activity-based product

A: Traditional product costs: The traditional method of allocating product costs is to allocate 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 is the most significant function of a cost of production report, and why is it important? What…

A: The significance and use of a cost of production report:

Q: What kinds of challenges occurs in the Cost Control and Cost Reduction in the Manufacturing…

A: Cost Control is different from cost reduction Cost Control focuses/emphasises on decreasing the…

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: How does time and motion study works? How could this method or process quantify the labor standard…

A: Cost accounting: Cost accounting is the process of classifying, recording, analyzing and…

Q: What are the ethical considerations in the application of activity based costing

A: Activity based costing  is a costing method used to find out cost of every activity of all products…

Q: How is “yield” determined for a process manufacturer?

A: Process costs It is a method of cost accounting, which is used where the production is continuous,…

Q: Explain why a manufacturer’s cost of supervising production might be a step-fixed cost.

A: Step-fixed costs: Step-fixed costs remain fixed over a wide range of activity but it jumps to a…

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: What are the essential factors for installing a cost accounting system? Explain

A: A cost accounting system is a system of…

Q: How are cost of production reports used for controlling and improving operations?

A: Production cost report: A production cost report is a comprehensive report prepared for each…

Q: Which is the reason a company would implement activity based costing

A: Activity based costing is the modern technique of allocation of overheads. In this, overheads are…

Q: Explain why some production costs must be assigned to products through an allocation process.

A: Production costs: These are the costs incurred on product manufacturing or delivering services by…

Q: Are the concepts underlying a relevant-cost analysis still valid in an advanced manufacturing…

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

Q: Why is the cost per equivalent unit often determined separately for direct materials and conversion…

A: Process costs: It is a method of cost accounting, which is used where the production is continuous,…

Q: Considering the cost method to utilize in any given manufacturing setting, what considerations…

A: The cost method to utilize in any given manufacturing setting, what considerations should be…

Q: What types of products would most likely be manufactured using the process cost system?

A: A process costing system is useful when in a manufacturing unit, large batches are produced. Many…

Q: What manufacturing cost term is used to describe the cost of materials that are an integral part of…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: What are product costs?

A: Product costs refer to the costs incurred by a business from manufacturing a product or providing a…

Q: Why are product costs also called inventoriable costs?

A: Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare the…

Q: What are the different purposes for which we measure product costs?

A: Product cost: Product cost is the cost incurred to manufacture a product, it includes the material…

Q: What is the production cost report?

A: