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What is purpose of factory overhead applied and how this information can use by the cost accountant in minimum the cost of the product?
Factory overhead is what it costs to run the factory. The cost accountant can look at the cost of overhead to find ways to minimize it, resulting in the cost of the product being lower.
Is insurance for distribution centre a period cost or product cost?
Overhead cost
Are cafeteria costs for the factory a period cost?
No. They are a product cost/factory overhead cost
Does absorption costing treat fixed manufacturing overhead as a period cost?
no its a product cost
Is Factory Overhead on income statement?
yes factory overhead is part of income statement and shown in cost of goods sold statement as a product cost.
What is purpose of factory overhead applied and how this information can use by the cost accountant in minimum the cost of the product?
Factory overhead is what it costs to run the factory. The cost accountant can look at the cost of overhead to find ways to minimize it, resulting in the cost of the product being lower.
Is factory utilities a product or a period cost?
Product cost classified further as a manufacturing overhead
Is insurance for distribution centre a period cost or product cost?
Overhead cost
Are cafeteria costs for the factory a period cost?
No. They are a product cost/factory overhead cost
Does absorption costing treat fixed manufacturing overhead as a period cost?
no its a product cost
Is Factory Overhead on income statement?
yes factory overhead is part of income statement and shown in cost of goods sold statement as a product cost.
How much overhead cost would be assigned to Product I90W using the activity-based costing system?
To determine the overhead cost assigned to Product I90W using an activity-based costing (ABC) system, you would first need to identify the relevant activities associated with Product I90W and their respective cost drivers. Then, calculate the overhead rates for each activity by dividing the total cost of each activity by the total units of the cost driver. Finally, multiply the overhead rate by the number of units of each cost driver used by Product I90W to find the total overhead cost assigned to it. Without specific data, the exact cost cannot be calculated.
Is indirect cost a conversion cost?
Indirect cost are those costs which are not directly allocated to product units as well as not directly identifiable that's why these are part of overhead cost and overhead cost is part of conversion cost.
Is factory heating costs classified as a product cost or period cost?
Factory heating cost is overhead cost and part of product cost as if there is no production there is no factory heating requires.
Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following a. Product cost b. Manufacturing overhead c. Period cost?
Product cost
Is salary of factory manager a period cost?
Salary of factory manager is Manufacturing overhead. and Manufacturing overhead is Product costs. So, It's not period cost.
What is the Difference between prime cost and overhead cost?
Prime cost is the cost of materials and labor involved in production of a commodity, excluding fixed costs. Overhead cost is the cost of on-going expenses, such as rent, utilities, and insurance. Overhead costs are one of the major factors in determining how a company charges for its service or product.
