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What type of cost should not be assigned to products in an activity-based costing system?
Wiki User
∙ 11y ago
Organization-sustaining costs, customer-level costs, and the costs of idle capacity should not be assigned to products. These costs represent resources that are not consumed by the products.
Wiki User
∙ 11y ago
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What manufacturing costs that are assigned to completed but unsold products can classified as?
All manufacturing costs that are assigned to completed (but unsold) products should be classified as
If a manufacturing company is using activity based costing for internal purposes only then organization sustaining overhead costs should not be allocated to any of the products true or false?
True
What is the difference between full costing and full absorption costing?
The two terms are different names for the same costing technique. Full cost refers to the principle that all overheads, fixed and variable, should be treated as product costs and be absorbed, or allocated, to cost objects. Cost objects can be various items but typically are units of product or service. This principle is distinct from variable costing in which fixed costs are considered to be period costs rather than product costs, and as such are not allocated to products. Product costs are used to value stocks of unsold products and cost of production so the selection of basis, full cost or variable cost, will affect the profit of individual products and influence management decisions.
The inventory costing method that is based on the assumption that costs should be charged against revenue in the order in which they were incurred is?
FIFO
To which account in the chart of accounts should provision for leave pay be assigned?
asset
What manufacturing costs that are assigned to completed but unsold products can classified as?
All manufacturing costs that are assigned to completed (but unsold) products should be classified as
If you were a candy manufacturer which costing system should you use full absorption costing or variable costing?
full absorption costing
If a manufacturing company is using activity based costing for internal purposes only then organization sustaining overhead costs should not be allocated to any of the products true or false?
True
What is the difference between full costing and full absorption costing?
The two terms are different names for the same costing technique. Full cost refers to the principle that all overheads, fixed and variable, should be treated as product costs and be absorbed, or allocated, to cost objects. Cost objects can be various items but typically are units of product or service. This principle is distinct from variable costing in which fixed costs are considered to be period costs rather than product costs, and as such are not allocated to products. Product costs are used to value stocks of unsold products and cost of production so the selection of basis, full cost or variable cost, will affect the profit of individual products and influence management decisions.
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Which of these is not one of the basic economic questions where should products be produced for whom should products be produced how should products be produced what products should be produced?
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Depreciation is a sunk cost, so you should ignore it in relevatnt costing. you shoud be asking yourself the following question: can I avoid depreciations once I have bought the asset? You should always ignore deprecition when answering a relevant costing questions. You have already incurred the cost of the asset and as a result you can not avoid deprecition, that is why it is a sunk cost. Peace Tshepo
What are the advantages of a costing system?
A costing system is usually incorporated to ascertain-the cost of each individual unit in the entityhow much should the selling price be to gain a desired profitto detect abnormal spoilage of goodsHowever one should make sure that the cost of such a system should not exceed the benefits.
Should the us end oversea operations?
yes because it is costing our inocent soldiers' lives
How can i you use should in a sentence?
You should really work hard on the report that your teacher has assigned you!
What products cannot be repaired?
The question should be "which products" NOT "what Products"
What numbers should be assigned to what Players in Basketball?
The oldest should be the lower numbers and the younger ones should be the highest
