In managerial accounting, the term cost driver refers to the activity that corresponds to the spending...
In managerial accounting, the term cost driver refers to the activity that corresponds to the spending of: Allocation Distribution Depreciation Overhead
Homework Answers
Answer: Overhead
Explanation
1.cost drivers in managerial accounting are used to allocate or distribute overhead cost to the various activities for determining the product cost
2. Generally cost drivers are used to allocate the labor, maintenance, and other variable expenses to the particular product
3.cost drivers are used to minimize the overhead cost
4. Some of the examples of cost drivers are as follows customer contacts, number of direct labor hours worked, and number of products returned from customers etc
5.for example electricity cost is distributed or allocated based on the cost driver of number of units used.
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In managerial accounting, the term cost driver refers to the
activity that corresponds to the spending...
Blackboard: Towson University: Weygandt, Managerial Accou Weygandt, Managerial Accounting, 7e CALCULATOR Time: 07:4...
Blackboard: Towson University: Weygandt, Managerial Accou Weygandt, Managerial Accounting, 7e CALCULATOR Time: 07:49 PM/ Remaining: 117 min Question 22 Fine Industries uses activity-based costing to assist management in setting prices for the company's three major product lines. The following information is available: Expected Use of Cost Driver per Activity Estimated Overhead Activity Cost Pool 25,000 labor hours 900,000 Cutting 8,000,000 320,000 machine hours Stitching 160,000 labor hours 2,800,000 Inspections 64,000 finished goods units 800,000 Packing Compute the activity-based overhead rates....
Relate current news to the topics we are studying in Managerial Accounting. Submit at least one...
Relate current news to the topics we are studying in Managerial Accounting. Submit at least one initial posting that refers to an original and recent news article. The news article must be related to the accounting topics that are covered in the course. The posting must include: title, reference, link, your personal executive summary of the article, and an explanation of how the article relates to a managerial accounting topic. Some topics include Basic cost management concepts, product costing, activity...
b. Managerial accounting is an activity that helps managers determ and services plan fut activity that...
b. Managerial accounting is an activity that helps managers determ and services plan fut activity that helps managers determine costs of products and services, plan future activities, and compare actual to planned results True False wa 7. Costs are importa Costs are important to managers because they impact both the financial position and profitability of a business True False 8. Both financial and managerial accounting rely on accepted principles that are enforced through an extensive set of rules and guidelines...
The last step in activity-based costing is to identify the cost driver that has a strong...
The last step in activity-based costing is to
identify the cost driver that has a strong correlation to the
activity cost pool.
assign overhead costs to products, using overhead rates
determined for each cost pool.
identify and classify the activities involved in the
manufacture of specific products, and allocate overhead to cost
pools.
compute the activity-based overhead rate per cost driver.
What is the major difference between ABC and ABM? A. ABC is used in managerial accounting...
What is the major difference between ABC and ABM? A. ABC is used in managerial accounting while ABM is used in financial accounting. B. ABC focuses on control while ABM focuses on measurement. C. The goal of ABC is to accurately measure costs while the goal of ABM is to manage the activities which cause the costs. D. There is no difference; ABC and ABM are two names for the same thing. Which of the following choices correctly classifies a...
Exercise 1-18 The following is a list of terms related to managerial accounting practices. 1. Activity-based...
Exercise 1-18 The following is a list of terms related to managerial accounting practices. 1. Activity-based costing 2. Just-in-time inventory 3. Balanced scorecard. 4. Value chain. Match each of the terms with the statement below that best describes the term. Terms Description A performance-measurement technique that attempts to consider and evaluate all aspects of performance using financial and nonfinancial measures in an integrated fashion. The group of activities associated with providing a product or performing a service An approach used...
List an appropriate allocation base or cost driver for each of the following activity cost pools:...
List an appropriate allocation base or cost driver for each of the following activity cost pools: Purchasing Materials Machine Setups Storage of Finished Products Machining Shipping
1. Smaller cost distortions occur when the traditional systems' single indirect-cost rate and the activity-cost-driver rates:...
1. Smaller cost distortions occur when the traditional systems' single indirect-cost rate and the activity-cost-driver rates: a) are similar in proportion to each other b) use the same cost driver units c) are more different than alike d) use the same total costs for computations 2. Activity-based costing is most likely to yield benefits for companies with all of the following characteristics EXCEPT: a) operations that remain fairly consistent b) a highly competitive environment, where cost control is critical c)...
Chapter 18 Introduction to Managerial Accounting Directed Reading Guide Why is managerial accounting important? Identify as...
Chapter 18 Introduction to Managerial Accounting Directed Reading Guide Why is managerial accounting important? Identify as a focus of Managerial (M) or Financial (F) accounting: Primarily for internal users ______ Primarily for external users ______ Follows GAAP rules ______ Summary reports of the entire company ______ Concerned about how reports will affect employee behavior ______ Managers need information for? How are costs classified? Manufacturing (product) costs categories are: materials labor overhead __________________ combines direct materials and direct labor. __________________ combines...
Exercise 10-18 The following is a list of terms related to managerial accounting practices 1. Activity-based...
Exercise 10-18 The following is a list of terms related to managerial accounting practices 1. Activity-based costing 2. Just in time inventory 3. Balanced Scorecard. 4. Value chain. Match each of the terms with the statement below that best describes the term, Terms Description A performance measurement technique that attempts to consider and evaluate all aspects of performance using financial and nonfinancial measures in an integrated fashion The group of activities associated with providing a product or performing a service....
Blackboard: Towson University: Weygandt, Managerial Accou Weygandt, Managerial Accounting, 7e CALCULATOR Time: 07:49 PM/ Remaining: 117 min Question 22 Fine Industries uses activity-based costing to assist management in setting prices for the company's three major product lines. The following information is available: Expected Use of Cost Driver per Activity Estimated Overhead Activity Cost Pool 25,000 labor hours 900,000 Cutting 8,000,000 320,000 machine hours Stitching 160,000 labor hours 2,800,000 Inspections 64,000 finished goods units 800,000 Packing Compute the activity-based overhead rates....
Relate current news to the topics we are studying in Managerial Accounting. Submit at least one initial posting that refers to an original and recent news article. The news article must be related to the accounting topics that are covered in the course. The posting must include: title, reference, link, your personal executive summary of the article, and an explanation of how the article relates to a managerial accounting topic. Some topics include Basic cost management concepts, product costing, activity...
b. Managerial accounting is an activity that helps managers determ and services plan fut activity that helps managers determine costs of products and services, plan future activities, and compare actual to planned results True False wa 7. Costs are importa Costs are important to managers because they impact both the financial position and profitability of a business True False 8. Both financial and managerial accounting rely on accepted principles that are enforced through an extensive set of rules and guidelines...
The last step in activity-based costing is to
identify the cost driver that has a strong correlation to the
activity cost pool.
assign overhead costs to products, using overhead rates
determined for each cost pool.
identify and classify the activities involved in the
manufacture of specific products, and allocate overhead to cost
pools.
compute the activity-based overhead rate per cost driver.
Exercise 1-18 The following is a list of terms related to managerial accounting practices. 1. Activity-based costing 2. Just-in-time inventory 3. Balanced scorecard. 4. Value chain. Match each of the terms with the statement below that best describes the term. Terms Description A performance-measurement technique that attempts to consider and evaluate all aspects of performance using financial and nonfinancial measures in an integrated fashion. The group of activities associated with providing a product or performing a service An approach used...
Exercise 10-18 The following is a list of terms related to managerial accounting practices 1. Activity-based costing 2. Just in time inventory 3. Balanced Scorecard. 4. Value chain. Match each of the terms with the statement below that best describes the term, Terms Description A performance measurement technique that attempts to consider and evaluate all aspects of performance using financial and nonfinancial measures in an integrated fashion The group of activities associated with providing a product or performing a service....
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