Requirement 1: Please describe the basic objectives in the use of standard costs. Requirement 2: Please describe a nonmanufacturing business that could benefit from the use of standards. Also, explain how standards would help that business control its operations.
Q: Which of the following major activities of a business will result in product costs? Multiple Choice…
A: Manufacturing is a process of production of goods for sale. It involves conversion of raw material…
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A: To calculate the cost of preparing a wage and salary tax return and a business tax return using ABC:…
Q: O The industry in which business is operoting O Obtoining the complete knowledge of the production…
A: A cost accounting system refers to the set of guidelines formulated in order to help the company to…
Q: Sunk costs are ignored in decision making but information about sunk costs are usually found in the…
A: Sunk Cost refers to the expenditure incurred by the organization where there is no scope to recover.…
Q: What benefits and drawbacks are there for a business that uses a Standard/Traditional Costing model?
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: activities performed by another firm or individual
A: Option "b" is wrong because responsibility centers are units within the firm, not another firm or…
Q: Cost and management accounting OA. require and entirely separate group of accounts than financial…
A: Cost and management accounting aids companies in determining the costs of materials, projects, and…
Q: Assume that ABC Company planned to conduct the market survey to know the opinions of the customers…
A: There are different types of costing method which are available to determine the required profit of…
Q: The cost hierarchy can be helpful to Roberta in managing its business through:
A:
Q: Explain why is important for a business to understand their composite mix of products when…
A: Sales mix is the proportion of sales in quantity with respect to total sales quantity. It is…
Q: Which of the following major activities of a business will result in product costs? Multiple Choice…
A: The costs that can be directly attributable to the produced goods are called product costs.
Q: Under which of the following ___________ field, one of the important function is to measure and…
A: Accounting is the process of identifying and recording the financial transactions of the company.…
Q: An important feature of a cost center is that a. It uses only monetary information b. It must be an…
A: Solution: The important function of a cost center is to track costs. The manager of a cost center is…
Q: Discuss the circumstances that would require a business to change from traditional costing to ABC…
A: The difference between the traditional method (using one cost driver) and the ABC method (using…
Q: XYZ Inc, is a BPO company that carters to different services: call.center.finance, and information…
A: Indirect Cost-:Indirect costs are expenses that correlate to an additional than one business action.…
Q: Costing systems and investment centres are two types of business segments that are entirely…
A: The excess of revenues over expenses is defined as the net profits of the organization. he cost of…
Q: The main categories of income statement for a manufacturer includes the following, except a. Direct…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Which of the following is not a reason for banks to use activity-based costing? a.to determine…
A: Activity based costing (ABC): Under activity based costing method, the activities responsible for…
Q: chicken. What is the impact on the cost? Briefly explain your steps to solve this business problem.
A: Government and industry regulations can affect the sales price of many products and services in many…
Q: List the advantages and disadvantages of different types of business. Explain the various costs…
A: Business organization refers to the formation of an entity with an objective to have higher profits…
Q: A business that is just starting out and is uncertain about what the sales levels will be would…
A: Fixed cost is the cost that does not change with the change in the output. Whereas, variable cost…
Q: Cost and management accounting A. require and entirely separate group of accounts than financial…
A: The prime aim of cost accounting is to assist or aid the management in a cost control structure and…
Q: Explain cost concepts it is relevant for the company to be aware of in decision situations such as.…
A: Here discuss about the details of the various costs which are incurred to the business entity which…
Q: "Simplification of all costs into only fixed and variable costs distorts the actual cost behavior…
A: Introduction:- There are four basic cost behavior patterns as follows:- fixed costs variable costs…
Q: ncepts and lerminology om the choices presented in parentheses, choose the appropriate term for…
A: solution Number Sentence Appropriate term A Advertising costs are usually viewed as…
Q: b.Cost control and reduction
A: Answer 20 Select which of the following requires a separate measurement of cost. D:- Volume Answer…
Q: A department that incurs costs but does not generate revenue is calleda(n) (a) profit center.(b)…
A: The cost center represents the unit of the business that does not generate revenue but incurs cost…
Q: Consider the business application," filing excess capacity 'below cost'. As noted there, the…
A: USPS is a monopoly player in postal services legally which prevents others from entering into the…
Q: PLEASE ANSWER ALL 4. A cost management system will provide the means to develop a. The most…
A: Cost management is the system to manage the Cost ( Plan and control )
Q: What is cost principle and give example of business situation of it
A: The cost principle is an accounting principle that requires assets, liabilities, and equity…
Q: Explain the meaning of (a) differential revenue, (b) differential cost, and (c) differential income.
A: Solution:- Explaining of meaning of (a) differential revenue, (b) differential cost, and (c)…
Q: Mr. Ahmed is responsible for appropriate product design, pricing policy, delivery, and services to…
A: Mr. Ahmed is responsible for appropriate product design, pricing policy, delivery, and services to…
Q: Give a thorough comparison about the benefits and drawbacks of these two business vehicles
A: Company: It is a form of business separately created by law as an association of persons who…
Q: XYZ Inc, is a BPO company that carters to different services; call center, finance, and information…
A: The following cost drivers are listed for XYZ Incorporation:
Q: Practice 2: a: Define standard costs. b: under what conditions should previously established…
A: a. Standard costs are the estimated costs of the items, processes, products which are used in the…
Q: Activity Based Costing to report product costs in financial statements
A: Activity Based Costing is a costing method to allocate overheads to products or operations or jobs.
Q: Kwami Williams and Emily Cunningham of MoringaConnect must understand manufacturing costs to…
A: Manufacturing costs: It is the aggregate cost incurred by a business to produce goods in a…
Q: Statement 1: Cost Accounting relates to the conventional costing methods and techniques in…
A: Cost accounting is a branch of accounting which focuses mainly on production related activities.
Q: 1. What is the primary trade-off an accountant must consider when deciding whether to identify cost…
A: Answer 1: Is the cost/benefit of the process reasonable for more accurate behavior obtained.
Q: B) The C.E.O. explains that the company is facing severe competition in the market place and has…
A: CVP Analysis: When it comes to cost-volume-profit (CVP) analysis, it is a method of determining how…
Requirement 1:
Please describe the basic objectives in the use of
Requirement 2:
Please describe a nonmanufacturing business that could benefit from the use of standards. Also, explain how standards would help that business control its operations.
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- Describe a nonmanufacturing business that could benefit from the use of standards. Additionally, explain how standards would help that business control its operations.Describe a nonmanufacturing business that could benefit from the use of standards. Also, explain how standards would help that business control its operations.Please describe a nonmanufacturing business that could benefit from the use of standards. Also, explain how standards would help that business control its operations. Please be original.
- Which of the following is NOT a period cost? Select one: O a. manufacturing costs. Ob general and administrative costs. Oc marketing costs. Od. research and development costs. Which of the following is NOT one of the questions management accountants might attempt to help answer in the formulation of strategy? Select one: a. What substitute products exist in the marketplace? Ob. Who are our most important customers? Does the strategy comply with GAAP (Generally Accepted Accounting Principles)? Od. Will adequate cash be available to implement the strategy?Practice 2: a: Define standard costs. b: under what conditions should previously established standard costs be revised? c: explain why the determination of standard cost amounts should not be the sole responsibility of a company's cost accountant.2. Why do managers use a standard cost system to control business activities?a) Setting standards required __________________ and ____________________ among different divisions and functions.
- List the advantages and disadvantages of different types of business. Explain the various costs based on analytical and decision making.how important does the owner /manager believe cost information is the success of the business?Question 4 a. Business decisions rely on certain characteristics which are based on intelligent and well-informed decisions. Explain in detail these characteristics. b. Classification of costs may be based on the information needs of management and their nature. Briefly explain the classification required for various purposes with appropriate examples.
- Internal costs that are charged to the segments of a business are called_______. A. controllable costs B. variable costs C. fixed costs D. allocated costsFor the following descriptions state whether the cost is controllable or uncontrollable by responsibility center managers. A. property tax of an existing manufacturing facility B. research and development of a product C. advertising of a product D. insurance cost of the existing manufacturing facility E. design of a productFor each of the following situations, two scenarios are described, labeled A and B. Choose which scenario is descriptive of a setting corresponding to activity-based responsibility accounting and which is descriptive of financial-based responsibility accounting. Provide a brief commentary on the differences between the two systems for each situation, addressing the possible advantages of the activity-based view over the financial-based view. Situation 1 A: The purchasing manager, receiving manager, and accounts payable manager are given joint responsibility for procurement. The charges given to the group of managers are to reduce costs of acquiring materials, decrease the time required to obtain materials from outside suppliers, and reduce the number of purchasing mistakes (e.g., wrong type of materials or the wrong quantities ordered). B: The plant manager commended the manager of the Grinding Department for increasing his departments machine utilization ratesand doing so without exceeding the departments budget. The plant manager then asked other department managers to make an effort to obtain similar efficiency improvements. Situation 2 A: Delivery mistakes had been reduced by 70 percent, saving over 40,000 per year. Furthermore, delivery time to customers had been cut by two days. According to company policy, the team responsible for the savings was given a bonus equal to 25 percent of the savings attributable to improving delivery quality. Company policy also provided a salary increase of 1 percent for every day saved in delivery time. B: Bill Johnson, manager of the Product Development Department, was pleased with his departments performance on the last quarters projects. They had managed to complete all projects under budget, virtually assuring Bill of a fat bonus, just in time to help with this years Christmas purchases. Situation 3 A: Harvey, dont worry about the fact that your department is producing at only 70 percent capacity. Increasing your output would simply pile up inventory in front of the next production department. That would be costly for the organization as a whole. Sometimes, one department must reduce its performance so that the performance of the entire organization can improve. B: Susan, I am concerned about the fact that your departments performance measures have really dropped over the past quarter. Labor usage variances are unfavorable, and I also see that your machine utilization rates are down. Now, I know you are not a bottleneck department, but I get a lot of flack when my managers efficiency ratings drop. Situation 4 A: Colby was muttering to himself. He had just received last quarters budgetary performance report. Once again, he had managed to spend more than budgeted for both materials and labor. The real question now was how to improve his performance for the next quarter. B: Great! Cycle time had been reduced and, at the same time, the number of defective products had been cut by 35 percent. Cutting the number of defects reduced production costs by more than planned. Trends were favorable for all three performance measures. Situation 5 A: Cambry was furious. An across-the-board budget cut! How can they expect me to provide the computer services required on less money? Management is convinced that costs are out of control, but I would like to know whereat least in my department! B: After a careful study of the Accounts Payable Department, it was discovered that 80 percent of an accounts payable clerks time was spent resolving discrepancies between the purchase order, receiving document, and the suppliers invoice. Other activities such as recording and preparing checks consumed only 20 percent of a clerks time. A redesign of the procurement process eliminated virtually all discrepancies and produced significant cost savings. Situation 6 A: Five years ago, the management of Breeann Products commissioned an outside engineering consulting firm to conduct a time-and-motion study so that labor efficiency standards could be developed and used in production. These labor efficiency standards are still in use today and are viewed by management as an important indicator of productive efficiency. B: Janet was quite satisfied with this quarters labor performance. When compared with the same quarter of last year, labor productivity had increased by 23 percent. Most of the increase was due to a new assembly approach suggested by production line workers. She was also pleased to see that materials productivity had increased. The increase in materials productivity was attributed to reducing scrap because of improved quality. Situation 7 A: The system converts materials into products, not people at work stations. Therefore, process efficiency is more important than labor efficiencybut we also must pay particular attention to those who use the products we produce, whether inside or outside the firm. B: I was quite happy to see a revenue increase of 15 percent over last year, especially when the budget called for a 10 percent increase. However, after reading the recent copy of our trade journal, I now wonder whether we are doing so well. I found out that the market expanded by 30 percent, and our leading competitor increased its sales by 40 percent.
