True of False? Because volume-based allocation rates assign more cost to high-volume products, low-volume products are...
True of False? Because volume-based allocation rates assign more cost to high-volume products, low-volume products are often undercosted.
Homework Answers
| The statement is true | |
|
When a single volume based rate is used for the allocation of overhead, it ignores the disproportionate costs which are associated often with complex low volume products. Hence they may over allocate to high volume products thereby leaving low volume products undercosted. |
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True of False? Because volume-based allocation rates assign more
cost to high-volume products, low-volume products are...
Which of the following statements is true? Volume-based costing has typically resulted in lower gross margins for high...
Which of the following statements is true? Volume-based costing has typically resulted in lower gross margins for high-volume products and higher gross margins for low-volume products. 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. Activity-based costing typically provides less information about product costs while requiring more recordkeeping. Activity-based costs per unit are always greater than volume-based costs per unit.
The high−low method is theoretically better than regression analysis because the high−low method uses more data...
The high−low method is theoretically better than regression analysis because the high−low method uses more data points than regression analysis. True False
True or False 2. Allocating overhead involves the following four steps: 1) Assign overhead costs to...
True or False 2. Allocating overhead involves the following four steps: 1) Assign overhead costs to departmental cost pools. 2) Select an allocation base for each department. 3) 2. Compute overhead allocation rates for each department and 4) Use departmental overhead rates to assign overhead costs to products 3.The schedule of cost of goods manufactured must be prepared monthly as it is a required general-purpose financial statement.
True or False and explain your answer High performers have more room for improvement than low...
True or False and explain your answer High performers have more room for improvement than low performers. Low performers, who have training and experience, are not likely to improve much. Coaching persistently, low performers is unlikely to produce quick results. Most Performance Improvement Plans do not result in improved performances. Effective coaches spend more time with high performers than with low performers. Questions are more effective coaching tools than recommendations. Many coaching efforts fail because they focus on employees’ weaknesses.
True of False
Following is a list of statements. Identify each statement as true or false.1.A product’s cost can be estimated most accurately when this cost can be traced directly to the product produced or the service provided.select an option TrueFalse2.Overhead costs are the easiest costs to determine because they can be traced easily to the product.select an option ...
As compared to high-volume products, low-volume products: a)require more special handling. b)require less machine setups. c)...
As compared to high-volume products, low-volume products: a)require more special handling. b)require less machine setups. c) are frequently responsible for less overhead costs. d) none of these answers are correct
TRUE or FALSE? In the second-stage allocation in activity-based costing, costs that were allocated in the...
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
Predetermined overhead rates are based on estimated cost and activity data. True or False
Predetermined overhead rates are based on estimated cost and activity data. True or False
Question 33 2 pts The first step for implementing activity-based costing is Calculate activity rates Assign...
Question 33 2 pts The first step for implementing activity-based costing is Calculate activity rates Assign overhead costs to activity cost pools Define activities, activity cost pools, and activity measures Assign overhead costs to cost objects Question 34 2 pts The differences between ABC and Traditional Product Costs include the following except: Traditional cost systems create a more favorable net operating income (loss) Traditional cost systems allocate manufacturing overhead costs using a volume-related allocation base Traditional cost systems allocate all...
2. True or False. If false, explain why. (a.) Only at very high or very low...
2. True or False. If false, explain why. (a.) Only at very high or very low pH does the non-ionized form of an amino acid predominate. (b.) At a pH greater than the pKa of an ionizable group, more than half of such groups are dissociated.
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
Question 33 2 pts The first step for implementing activity-based costing is Calculate activity rates Assign overhead costs to activity cost pools Define activities, activity cost pools, and activity measures Assign overhead costs to cost objects Question 34 2 pts The differences between ABC and Traditional Product Costs include the following except: Traditional cost systems create a more favorable net operating income (loss) Traditional cost systems allocate manufacturing overhead costs using a volume-related allocation base Traditional cost systems allocate all...
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