Service organizations can use activity-based costing to allocate selling and administrative costs to services provided
true or false
Answer- TRUE- Service organizations can use activity-based costing to allocate selling and administrative costs to services provided.
Explanation- Activity-based costing method can be used by service industry to allocate their selling and administrative costs directly to the services provided.
Service organizations can use activity-based costing to allocate selling and administrative costs to services provided true...
Explain the use activity-based costing to allocate costs in a modern manufacturing environment to products or services.
Which of the following statements about activity-based costing is false? Activity-based costing is most appropriate for a firm that produces similar products that use similar resources. Activity-based costing requires a two-stage allocation of costs. Activity-based costing categorizes costs as unit-level, batch-level, product-level, or organization-sustaining. Activity-based costing can be used for manufacturing, administrative, or selling costs.
Selling and administrative costs are period costs under both absorption and variable costing. True False
Allocating selling and administrative expenses using activity based costing Labels and Amount Descriptions Activity rates Activity Costs Customer Profitability Report Suced ceils have feedback 3. Construct customer profitability reports for the three customers, dated for the year ended December 31, using the activity costs in (). The reports should disclose the gross profit and income from operations associated with each customer Refer to the list of Lisbets and Amount Descriptions for the exact wording of the answer choices for text...
True or False: Activity-based costing (ABC) techniques used to evaluate customer profitability can also be applied to evaluating suppliers. True or False: Quality can be defined as the degree to which a product or service performs as it was designed to do. True or False: The basic concepts involved in activity-based costing (ABC) can be used to determine customer profitability as well as product costs. True or False: Tangible customer expectations include how the product's salespeople treat customers and the...
The Superior Gardening Service provides gardening services to its clients. The company uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system. Activity Cost Pool Total Cost Total Activity Gardening $125,425 17.300 hours Job support 28.134 1,775 jobs Client support 4,530 280 clients Other 150.000 Not applicable Total $308.089 The "Other" activity cost pool consists of the costs of idle capacity and organization- sustaining costs. One particular client, the...
eBook Show Me How Calculator Print Item Allocating Selling and Administrative Expenses using Activity-Based Costing Shrute Inc. manufactures office copiers, which are sold to retailers. The price Price 1.110 per un Cost of goods sold Gross profit $420 per unit In addition, the company incurs selling and administrative expenses of $414,030. The company wishes to assign these costs to its three major retail customers. The Warehouse, Kosmo Co. and Supply Universe. These expenses are related to its three major nonmanufacturing...
TRUE or FALSE? In the second-stage allocation in activity-based costing, costs that were allocated in the first stage are assigned to products. O True O False
How Activity based costing evaluate costs? And how a small e-commerce business allocate manufacturing overheads using activity based costing.
Under what circumstances might the activity-based costing method provide more accurate product costs than the multiple production department factory overhead method? When might activity-based costing be preferred over using a relative amount of product sales in allocating selling and administrative expenses to products? How can activity-based costing be used in service companies? 250 words minimum