How is the distinction between direct and indirect costs handled differently under volume-based versus activity- based costing

Question:

How is the distinction between direct and indirect costs handled differently under volume-based versus activity- based costing systems?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Managerial Accounting

ISBN: 9780073022857

7th Edition

Authors: Ronald W Hilton

See More Books

Question Posted: Mar 12, 2013 02:09 AM

See More Questions

Vinh Yen claims that the distinction between direct and indirect materials is based entirely on physical association with the product. Is Vinh correct? Why?
How would a restaurant's direct and indirect costs differ from those of a manufacturer? For which type of organization are direct costs more important, and for which type are indirect costs more...
Is the distinction between intra-industry trade and interindustry trade a useful distinction? Why or why not?
Refer to the information in Exercise 16-11. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2017. IKIBAN INC. Comparatlve Balance Sheets June 30, 2017 and...
Suppose we use Theorem 2 to form a partition P from an equivalence relation R. What is the equivalence relation R' that results if we use Theorem 2 again to form an equivalence relation from P?
A cylindrical tank, $0.3 \mathrm{~m}$ in diameter, drains through a hole in its bottom. At the instant when the water depth is $0.6 \mathrm{~m}$, the flow rate from the tank is observed to be \(4...
True or False. All practical systems have damping.
The current assets and current liabilities sections of the balance sheet of Allessandro Scarlatti Company appear as follows. The following errors in the corporations accounting have been discovered:...
Using the model of fan identification for your favorite team, explain (a) why you are a highly identified fan of your favorite team and (b) the consequences of your identification and passion. A...
As of June 30, 2022 (the computation date for the 2023 tax rate), Sanchez Company had a negative balance of $1,190 in its unemployment reserve account in State A. The companys average payroll over...
Why do product-costing systems based on a single. Volume based cost driver tend to over cost high-volume products? What undesirable strategic effects can such distortion of product costs have?
Briefly explain two factors that tend to result in product cost distortion under traditional, volume based product-costing system.
On January 1, 20X1, Tango-In-The-Night, Inc., issued $75 million of bonds with an 8% coupon interest rate. The bonds mature in 10 years and pay interest semiannually on June 30 and December 31 of...
Monique has amassed a following of over 1 Million followers on social media. Her content primarily centers around her fabulous life. Think pool days, brunch, happy hours, Taco Tuesday, travel, and...
Homer Simpson slips and falls in Moe's Tavern located in Winter Haven, Florida, on a wet spot where Barney Grumble had spilled a glass of Duff Beer, seriously injuring his back and causing him to...
Assume a company is considering using available space to make 10,000 units of a component part that it has been buying from a supplier for a price of $41.25 per unit. The companys accounting system...
0.120 kg of steel pellets s = 449 J/ kg K are heated in a boiling water bath. The pellets are then added to a Styrofoam cup that contains 0.080 kg of water w = 4190 J/ kg K at room temperature 20 C ....
A dam as an upstream face that is vertical and has the shape of a semicircle with a diameter of 100 m at the top. Water is up to the top of the dam. The atmosphere presses on the rear of the dam....
Assume a list has the following configuration: Write a series of Java statements using the List ADT of Figure 4.1 to delete the element with value 15. (2, 23, 15, 5, 9).
Which of the companies has the lowest accounts receivable turnover in the year 20X2? a. Company A. b. Company B. c. Company C. d. CompanyD. 20X1 20X2 Credit Sales Average Receivables Balance $1.0...
Discuss the following proposition with reference to an automobile garage that handles maintenance and repair: Modal choice decisions could improve the responsiveness of the supply chain performance.
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2...
Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus,...
Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus,...
Subtract and simplify: 5x-6x+2-(-2-x+2x)
In order to value a company, you would need to forecast its future (a key word here) free cash flows. How would you approach this task? Using downloaded real data, try to make the forecast and see,...
share five (5) pieces of advice you would give the class about personal financial planning. Explain each. You might go back and look at the introductions in the first discussion for a general,...

How is the distinction between direct and indirect costs handled differently under volume-based versus activity- based costing

Question:

Step by Step Answer:

In traditional volumebased costing systems only direct material and dir...View the full answer

Managerial Accounting

Students also viewed these Managerial Accounting questions