What from the upcoming options will be made when using the traditional costing method, relatively to using the ABC costing method?
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What from the upcoming options will be made when using the traditional costing method, relatively to using the ABC costing method?
Pick only one answer –
- Underestimating the products cost with products that have low direct costs, and one-time products that are produced in small series.
- A tight costing connection between the cost and the factor causing it.
- All the answers are incorect.
- A higher cost for implementing and
managing the accounts managing system, the general and the costing. - Overestimating the products cost with products that have low direct costs, and one-time products that are produced in small series.
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Solved in 2 steps
- Which of the following can signal the need for a new product costing system? Select one: O a. Complex products have high reported profitability while more basic high-volume products show small margins or even losses. O b. Line managers do not believe reported product costs. O c. All of the given answers. od Overhead rates are high and increasing.Which of the following statements is true? O a. Activity-based costs per unit are always greater than volume-based costs per unit. O b. All the statements are false. O c. Different cost allocation methods are constructed so that they typically result in the same or similar estimates of how much it costs to make a product. O d. Activity-based costing typically provides less information about product costs while requiring more recordkeeping. O e. Volume-based costing has typically resulted in overcost for high-volume products and undercost for low-volume products. 11:40 ere to search A D a dx ENG 22-05-2021 hp delete home end an Ed 96 & 7\ 6. + backspace mum lock RO 7 V home g up K enter 50 pause B t shift 2Y end alt ctrl insWhich of the following statements is not false of costing systems? A. Activity-based costing systems tend to use fewer cost pools than does a traditional costing system. B. Many traditional costing systems can distort product costs and profitability. C. Activity-based costing systems tend to combine various costs into a single cost pool. D. Traditional costing systems tend to be more costly than activity-based costing systems
- CLEAR MY CHOICE Which of the following statements is false? O a Volume-based costing has typically resulted in undercost for high-volume products and overcost for low-volume products. O b. Different cost allocation methods are constructed so that they typically result in the same or similar estimates of how much it costs to make a product. OC Activity-based costing typically provides less information about product costs while requiring more recordkeeping. O d. All the statements are false. O e. Activity-based costs per unit are always greater than volume-based costs per unit. Windows buii PAGE dows huil Sslacyl Jail NEXT P. ENG DELLHow important is it to trace costs appropriately? Explain. As you are beginning to think about the importance of tracing costs appropriately, please consider the differences between variable costing and absorption costing. What implications does each of these have on such things as financial reporting of profit and pricing your products for the marketplace?all of the following are reasons to use backflush costing, except a. Managers tend to use their limited resources on developing more accurate product cost data. b. Complex Ledger systems may be too costly to develop under traditional cost tracking systems. c. Accuracy is critical whem allocationg accurate conversion cost per unit. d. A fairly rough allocation may be sufficient for external reporting purposes.
- The following statements refer to organisations that use service costing:(i) The service provided will be a homogenous product.(ii) The cost of materials is relatively small compared to labour, expenses and overheads.(iii) A problem with service costing is the difficulty in defining a realistic cost unit.(iv) Inventory levels are generally high in-service costing industries.Which of the above statements are correct?a) (i) and (ii)b) (ii) and (iii)c) (ii) and (iv)d) (i) and (iv)In making short-term business decisions, what should you do? Use a traditional costing approach. Focus on total costs. Separate variable from fixed costs. Focus only on quantitative factors.Which among the following is not true about traditional costing system? a. This method allocates greater proportion of overheads to high volume products b. This method avoids the phenomenon of product cost cross subsidization c. This method allocates smaller proportion of overheads to low volume products d. This method leads to cost smoothing
- Which of the following statements regarding activity-based costing (ABC) is false? A. ABC is not an appropriate tool for analysing non-manufacturing costs. B. ABC can be used to analyse the profitability of customers. C. ABC evolved as a response to problems with traditional costing systems. D. ABC can be used to measure the cost of cost objects.When a traditional, volume-based costing system is used, which of the following products is most likely to suffer from cost distortion? Select one O a. A low-volume, low-complexity product ObA low-volume, high-complexity product O CA low-volume, medium-complexity product O d. none of the given answer O e. A high-volume, medium-complexity productWhich of the following statements is false? Multiple Choice Examples of selling costs include shipping, sales commissions, and costs of finished goods warehouses. Discretionary fixed costs may be altered in the short term by current managerial decisions. A particular cost may be direct or indirect depending on the cost object. All sunk costs should be ignored in making a decision. Some of the conversion costs are period costs.
