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The "true and fair cost of production" refers to an accurate representation of all expenses incurred in the manufacturing of goods or services, ensuring transparency and completeness. This includes direct costs like raw materials and labor, as well as indirect costs such as overhead and depreciation. By adhering to this principle, businesses can provide stakeholders with a realistic view of profitability and financial health, facilitating informed decision-making. Ultimately, it promotes accountability and trust in financial reporting.
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The cost of a customized machine used in the production of a single product would be classified as a direct cost?
true
Why are service cost center overheads reapportioned to production cost centers?
Service cost center overheads are reapportioned to production cost centers to ensure that all costs associated with producing goods are accurately reflected in the total cost of production. This process helps in assigning the true cost of resources consumed by production activities, allowing for more accurate pricing, budgeting, and financial analysis. By redistributing these overheads, organizations can better understand the profitability of their products and make informed managerial decisions. Ultimately, it enhances the overall cost accuracy and efficiency within the organization.
Difference between cost audit and financial audit?
Cost audit is done to audit the cost elements of unit costs while in financial audit, audit of financial statements is done to find out information provided is true and fair or not.
What is true variable cost?
True variable cost refers to expenses that change directly with the level of production or sales volume. Unlike fixed costs, which remain constant regardless of output, true variable costs fluctuate in direct proportion to the amount produced or sold, such as raw materials, direct labor, and sales commissions. Understanding true variable costs is crucial for businesses to accurately assess profitability and make informed pricing and production decisions.
Why direct production labor cost might be regarded as a fixed cost rather than as variable cost?
Direct labor wages are normally Variable costs, charged directly to the Production Cost Account, what is commonly called WIP. It is commonly held that direct labor wages change proportionally to the changes of the production level. In fact, however, hourly wages are only related to a time unit, not to pieces produced. True direct wages are piece-work wages, but very few industries pay their workers by unit of production. We should have the option to treat a direct labor wage as a fixed cost, just as salary is a fixed cost. Monthly or hourly, these payment are paid by time interval, not by production unit
What does the phrase internalizing an external cost mean?
Internalizing an external cost means incorporating the cost of negative externalities, such as environmental damage or health impacts, into the pricing of a product or service. This helps reflect the true cost of production and consumption by accounting for effects beyond the immediate transaction.
Is it true if value added is the difference between the value of goods as they leave a stage of production and cost of the goods as they entered that stage of production?
true
The production budget shows both unit production data and unit cost datais this trueexplain?
The production budget shows both unit production data and unit cost detais this true explain?
Suppliers have an incentive to increase output when price is higher than cost of production .true or false?
true
The cost of a customized machine used in the production of a single product would be classified as a direct cost?
true
Which is not true about Systems Engineering?
It ensures the lowest possible production cost and shortest program schedule.
What does the phrase 'fair dinkum' mean?
The Australian term "fair dinkum" means genuine or true. If someone is fair dinkum, it means they are honest, and there's no deception in them. What you see is what they are really like.If presented as a question, such as "Are you fair dinkum?" or just "Fair dinkum?" it means "Is that really true?" or "Are you serious?"
Allocative efficiency is the particular mix of goods and service most highly valued by society (minimum-cost production assumed). True or False?
True
What does verus mean?
An internet search found that verus is apparently a Latin word which can mean true, legitimate, honest, fair, genuine. etc.
Total production costs should be equal to cost of goods sold in the proforma income statement. True or False?
False
What was the Production Budget for True Lies?
The Production Budget for True Lies was $100,000,000.
What was the Production Budget for A True Story?
The Production Budget for A True Story was $45,000.
