True or False: The death spiral can occur even in firms with increasing demand. True or...
True or False: The death spiral can occur even in firms with increasing demand.
True or False: Predetermined overhead rates are not used in first-stage cost allocations but are used in second-stage cost allocations.
True or False: The plantwide allocation concept cannot be used in nonmanufacturing organizations.
True or False: Activity-based costing (ABC) can be applied to administrative activities (e.g., purchasing) but not to marketing activities.
Homework Answers
|
1. True Death spiral can also occur in firm's with the increasing demand |
| 2. True |
|
3. False Plantwide allocation can be used both by manufacturing and non manufacturing organizations |
| 4. False |
Add Answer to:
True or False: The death spiral can occur even in firms with
increasing demand.
True or...
Which of the following statements is true of activity-based costing?
Which of the following statements is true of activity-based costing?Multiple ChoiceABC ignores the allocation of marketing costs.ABC classifies some indirect costs as direct costs. products.ABC is more likely to result in big differences from a traditional costing system if the business makes only one product rather than multiple products.Activities are the cost objects of the second stage of ABC.Production costs per tennis racket total $ 38, which consists of $ 25 in variable production costs and $ 13 in fixed...
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 Capital budget decisions are usually short term in nature. The procedure used to...
True or false Capital budget decisions are usually short term in nature. The procedure used to compute the present value of a series a cash flows is called discounting. The internal rate of return is the discount rate that causes the net present of a project to equal zero. When using the net present value method, changing the rate will change the net present value. One of the keys of activity based costing is selecting the appropriate cost driver. Activity...
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...
state true or false and briefly explain your answer 5. Firms that do not pay any...
state true or false and briefly explain your
answer
5. Firms that do not pay any dividends cannot be valued using dividend discount model but can be valued using residual income model. 6. A company's cost of debt is the contracted rate that it pays on its outstanding debt. 7. Enterprise value (EV) to EBITDA ratio is better than price to earnings ratio for relative valuation. 8. Price to EBITDA ratio should not be used for relative valuation.
True or False 5. Market failure cannot occur if non-rival goods are excludable and producers can...
True or False
5. Market failure cannot occur if non-rival goods are excludable and producers can charge for them. As a percentage of GDP, spending on national defense has mainly declined since 1950. The total willingness to pay for a certain quantity of a good can be greater than the amount people actually spend. Whereas cost externalities cause inefficiency, benefit externalities are good for the economy and improve economic efficiency. 9. Language has a network externality. 10. Smoking imposes externalities...
Do It! Review 4-1 Indicate whether the following statements are true or false. (a) The reasoning...
Do It! Review 4-1 Indicate whether the following statements are true or false. (a) The reasoning behind ABC cost allocation is that products consume activities and activities consume resources. (b) Activity-based costing is an approach for allocating direct labor to products. (c) In today's increasingly automated environment, direct labor is never an appropriate basis for allocating costs to products. (d) A cost driver is any factor or activity that has a direct cause-effect relationship with resources consumed. (e) Activity-based costing...
true or false 1. Indirect manufacturing costs are easily traceable to products. answer ch ny uses...
true or false
1. Indirect manufacturing costs are easily traceable to products. answer ch ny uses ti ses direct s as its all 2. One important reason that managers allocate overhead costs to products is to promote efficient use of resources. Departmer Departmen 3. U.S. Generally Accepted Accounting Principles require all manufacturing costs be allocated products for inventory costing purposes. 4. Total company wide estimated overhead costs will change depending on if plant wide allocation or departmental allocation is used....
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 Conversion costs include the cost of purchasing and converting w o rd products...
TRUE OR FALSE
Conversion costs include the cost of purchasing and converting w o rd products 7) In a production cost report the number of units to count for units accounted for always bee n themes of 3) The cost amounts that are transferred out from one process to for the receiving process other proces becometered in costs 9) The weighted average method determines the cost of equivalent units of production by counting for beginning inventory costs separately from current...
Which of the following statements is true of activity-based costing?Multiple ChoiceABC ignores the allocation of marketing costs.ABC classifies some indirect costs as direct costs. products.ABC is more likely to result in big differences from a traditional costing system if the business makes only one product rather than multiple products.Activities are the cost objects of the second stage of ABC.Production costs per tennis racket total $ 38, which consists of $ 25 in variable production costs and $ 13 in fixed...
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
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...
state true or false and briefly explain your
answer
5. Firms that do not pay any dividends cannot be valued using dividend discount model but can be valued using residual income model. 6. A company's cost of debt is the contracted rate that it pays on its outstanding debt. 7. Enterprise value (EV) to EBITDA ratio is better than price to earnings ratio for relative valuation. 8. Price to EBITDA ratio should not be used for relative valuation.
True or False
5. Market failure cannot occur if non-rival goods are excludable and producers can charge for them. As a percentage of GDP, spending on national defense has mainly declined since 1950. The total willingness to pay for a certain quantity of a good can be greater than the amount people actually spend. Whereas cost externalities cause inefficiency, benefit externalities are good for the economy and improve economic efficiency. 9. Language has a network externality. 10. Smoking imposes externalities...
Do It! Review 4-1 Indicate whether the following statements are true or false. (a) The reasoning behind ABC cost allocation is that products consume activities and activities consume resources. (b) Activity-based costing is an approach for allocating direct labor to products. (c) In today's increasingly automated environment, direct labor is never an appropriate basis for allocating costs to products. (d) A cost driver is any factor or activity that has a direct cause-effect relationship with resources consumed. (e) Activity-based costing...
true or false
1. Indirect manufacturing costs are easily traceable to products. answer ch ny uses ti ses direct s as its all 2. One important reason that managers allocate overhead costs to products is to promote efficient use of resources. Departmer Departmen 3. U.S. Generally Accepted Accounting Principles require all manufacturing costs be allocated products for inventory costing purposes. 4. Total company wide estimated overhead costs will change depending on if plant wide allocation or departmental allocation is used....
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
Conversion costs include the cost of purchasing and converting w o rd products 7) In a production cost report the number of units to count for units accounted for always bee n themes of 3) The cost amounts that are transferred out from one process to for the receiving process other proces becometered in costs 9) The weighted average method determines the cost of equivalent units of production by counting for beginning inventory costs separately from current...
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