TRUE OR FALSE: The two-stage cost allocation process allocates costs to multiple cost pools and then...
TRUE OR FALSE: The two-stage cost allocation process allocates costs to multiple cost pools and then to individual cost objects using different allocation bases.
TREU OR FALSE: It is important that cost management systems are designed using the cost-benefit principle so that the costs of gathering additional information are balanced against the benefits of that information.
Homework Answers
(1)
ANSWER: True
REASON:
In the first stage, the overhead costs of service/support departments are allocated to production departments. In the second stage, the overheads accumulated under production department are assigned to products based on a suitable basis.
(2)
ANSWER: True
REASON:
Cost-benefit analysis is fundamental to the adoption and design of cost management systems.
Add Answer to:
TRUE OR FALSE: The two-stage cost allocation process allocates
costs to multiple cost pools and then...
A two-stage system first allocates costs to: Multiple Choice Ο O Products or services and then...
A two-stage system first allocates costs to: Multiple Choice Ο O Products or services and then allocates costs to departments or activities Ο O The cost driver and then allocates costs to the cost hierarchy Ο A product line and then allocates costs to the department Ο Departments or activities and then allocates costs to products or services
Excel SIM: First-Stage Allocation to Activity Cost Pools Help 1. Assign Overhead Costs to Activity Cost...
Excel SIM: First-Stage Allocation to Activity Cost Pools Help 1. Assign Overhead Costs to Activity Cost Pools OBS FILE HOME DESERT Festtage Allocation to Activity Cost Pools Excel PAGE LAYOUT FORMULAS DATA REVIEW 7 - X VIEW Alignment Number Conditional Formatas C oord B27 The following information care dintr est verhead Chocolates by lock for the current year e Activity Cost Pools Product Development Indirect factory w Other en de Factory 12 General Administrate Department 13 Admistrative was and series...
Q: Prepare profit reports for software and consulting assuming the company allocates costs using headcount, space...
Q: Prepare profit reports for software and consulting assuming
the company allocates costs using headcount, space occupied, and
sales as allocation bases.
Q: Which provides the best information on profitability: a
single overhead cost pool with headcount as the allocation base, or
multiple cost pools using headcount, sales, and space occupied?
Assume the controller’s assumptions are correct. A) Multiple Cost
Pools OR B) Single overhead cost pool
-Please show work if possible and I will try to LIKE asap. Thank...
True or False 6. An architect is a business which is likely to use job costing....
True or False
6. An architect is a business which is likely to use job costing. 7. Prime costs are direct labour and direct material. 8. GAAP requires a product cost for finished goods inventory only. 9 Goods that are in production but not yet complete are classified as work in process. 10. Inventory is reported at cost in the statement of financial position. 11. Cost of sales is shown in the statement of financial position 12. Non-manufacturing costs are...
True or False Answer True or False. I already included it above, you did not have a careful...
True or False
Answer True or False. I already included it above, you did not have
a careful look.
6. The starting point for managerial decisions is monitoring actual operations 7. Desirable employee behaviour can be motivated by trying employee performance evaluation and pay to long term or short term results 8. Organisational information systems only collect accounting information 9. Cost accounting information is used for both management accounting and financial accounting activities 10. Management accounting is the process of...
Traditional two-stage cost allocation means that indirect costs are first allocated to both operating and service...
Traditional two-stage cost allocation means that indirect costs are first allocated to both operating and service departments, then operating department costs are allocated to service departments. Select one: True False
Required: 1. Perform the first-stage allocation of costs to the activity cost pools. 2. Compute the...
Required:
1. Perform the first-stage allocation of costs to the activity
cost pools.
2. Compute the activity rates for the activity cost pools.
3. Using the activity rates you have computed, determine the
total cost and the average cost per thousand square feet of each of
the following jobs according to the activity-based costing
system.
a. A routine 1,000-square-foot asbestos removal job.
b. A routine 2,000-square-foot asbestos removal job.
c. A nonroutine 2,000-square-foot asbestos removal job.
Mercer Asbestos Removal Company...
true or false 14. In a process costing system. partially completed units in Work-in-Process Inventory are...
true or false
14. In a process costing system. partially completed units in Work-in-Process Inventory are typically converted to equivalent completed units. 15. Before purchasing an Enterprise Resource Planning (ERP) system, companies must confirm that the benefits of an ERP system will outweigh the costs of implementation 16. Underapplied overhead occurs when actual overhead costs are lower than overhead costs applied to jobs. 17. Total companywide estimated overhead costs will change depending on if plant wide allocation or departmental allocation...
True or false 1. Indirect manufacturing costs are easily traceable to products. 2. One important reason...
True or false
1. Indirect manufacturing costs are easily traceable to products. 2. One important reason that managers allocate overhead costs to products is to promote the efficient use of resources. 3. U.S. Generally Accepted Accounting Principles require all manufacturing costs be allocated to products for inventory costing purposes. 4. Total companywide estimated overhead costs will change depending on if plant wide allocation or departmental allocation is used. 5. The plant wide approach to allocating overhead is typically the simplest...
Define cost smoothing, and describe the consequences it can have on costs. What is cost smoothing?...
Define cost smoothing, and describe the consequences it can have on costs. What is cost smoothing? A. Cost smoothing describes a costing approach that allocates indirect costs to cost objects based on the budgeted average indirect cost rates multiplied by the budgeted quantities of the cost allocation bases. B. Cost smoothing describes the method of calculating the average fixed manufacturing overhead cost of each unit produced or service performed. C. Cost smoothing describes a costing system that uses direct costs...
A two-stage system first allocates costs to: Multiple Choice Ο O Products or services and then allocates costs to departments or activities Ο O The cost driver and then allocates costs to the cost hierarchy Ο A product line and then allocates costs to the department Ο Departments or activities and then allocates costs to products or services
Excel SIM: First-Stage Allocation to Activity Cost Pools Help 1. Assign Overhead Costs to Activity Cost Pools OBS FILE HOME DESERT Festtage Allocation to Activity Cost Pools Excel PAGE LAYOUT FORMULAS DATA REVIEW 7 - X VIEW Alignment Number Conditional Formatas C oord B27 The following information care dintr est verhead Chocolates by lock for the current year e Activity Cost Pools Product Development Indirect factory w Other en de Factory 12 General Administrate Department 13 Admistrative was and series...
Q: Prepare profit reports for software and consulting assuming
the company allocates costs using headcount, space occupied, and
sales as allocation bases.
Q: Which provides the best information on profitability: a
single overhead cost pool with headcount as the allocation base, or
multiple cost pools using headcount, sales, and space occupied?
Assume the controller’s assumptions are correct. A) Multiple Cost
Pools OR B) Single overhead cost pool
-Please show work if possible and I will try to LIKE asap. Thank...
True or False
6. An architect is a business which is likely to use job costing. 7. Prime costs are direct labour and direct material. 8. GAAP requires a product cost for finished goods inventory only. 9 Goods that are in production but not yet complete are classified as work in process. 10. Inventory is reported at cost in the statement of financial position. 11. Cost of sales is shown in the statement of financial position 12. Non-manufacturing costs are...
True or False
Answer True or False. I already included it above, you did not have
a careful look.
6. The starting point for managerial decisions is monitoring actual operations 7. Desirable employee behaviour can be motivated by trying employee performance evaluation and pay to long term or short term results 8. Organisational information systems only collect accounting information 9. Cost accounting information is used for both management accounting and financial accounting activities 10. Management accounting is the process of...
Required:
1. Perform the first-stage allocation of costs to the activity
cost pools.
2. Compute the activity rates for the activity cost pools.
3. Using the activity rates you have computed, determine the
total cost and the average cost per thousand square feet of each of
the following jobs according to the activity-based costing
system.
a. A routine 1,000-square-foot asbestos removal job.
b. A routine 2,000-square-foot asbestos removal job.
c. A nonroutine 2,000-square-foot asbestos removal job.
Mercer Asbestos Removal Company...
true or false
14. In a process costing system. partially completed units in Work-in-Process Inventory are typically converted to equivalent completed units. 15. Before purchasing an Enterprise Resource Planning (ERP) system, companies must confirm that the benefits of an ERP system will outweigh the costs of implementation 16. Underapplied overhead occurs when actual overhead costs are lower than overhead costs applied to jobs. 17. Total companywide estimated overhead costs will change depending on if plant wide allocation or departmental allocation...
True or false
1. Indirect manufacturing costs are easily traceable to products. 2. One important reason that managers allocate overhead costs to products is to promote the efficient use of resources. 3. U.S. Generally Accepted Accounting Principles require all manufacturing costs be allocated to products for inventory costing purposes. 4. Total companywide estimated overhead costs will change depending on if plant wide allocation or departmental allocation is used. 5. The plant wide approach to allocating overhead is typically the simplest...
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