In order to identify costs that relate to a specific product, an allocation base should be chosen

Question:

In order to identify costs that relate to a specific product, an allocation base should be chosen that

(a). Does not have a cause and effect relationship

(b). Has a cause and effect relationship

(c). Considers variable costs but not fixed costs

(d). Considers direct materials and direct labour but not factory overhead.

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

Step by Step Answer:

Related Book For book-img-for-question

Cost Accounting

ISBN: 9780070221628

4th Edition

Authors: Jawahar Lal, Seema Srivastava

See More Books

Question Posted: Sep 05, 2023 01:35 AM

See More Questions

Which of the following statements is correct? An indirect cost can be readily traced to a cost object while a direct cost is traced only to manufacturing costs. A direct cost can be traced to a...
Read the following article and answer the questions below: Building Competitive Advantage Through People Magazine: Winter 2002Research Feature January 15, 2002 Reading Time: 23 min Christopher A....
The Weld, Bergevin, and Magrath article points out that if a company is going to intentionally manipulate earnings, they must be astute enough to present financial statements that still seem...
Differentiate each trigonometric identity to obtain a new (or familiar) identity. sin x (a) tan x cos x (b) sec x= cos x I + cot x (c) sin x + cos x = cse x
According to Nielsen Media Research, the average number of hours of TV viewing per household per week in the United States is 50.4 hours. Suppose the standard deviation is 11.8 hours and a random...
A salesman has scheduled two appointments to sell encyclopedias. His first appointment will lead to a sale with probability .3, and his second will lead independently to a sale with probability .6....
Describe how the transaction date is determined for the purpose of initially recognising items arising from foreign currency transactions.
Arden Company reported the following costs and expenses for the most recent month: Direct materials . . . . . . . . . . . . . . . . . . . . . . $ 80,000 Direct labor . . . . . . . . . . . . . . . . ....
The DD-AA model predicts that a permanent increase in foreign money demand will lead to an improvement in the domestic current account. True/False/Uncertain, explain and support your answer with ONE...
A double pipe heat exchanger is made of a 6-nom sch 40 commercial steel outer pipe and a 5-nom sch 40S stainless steel inner pipe. The fluid in the annular space is cyclohexane that has a volumetric...
Explain the general principles to be kept in mind while considering whether item of expenditure is to be treated as overhead.
The overhead of a manufacturing company has been analysed to the point of primary distribution as given below. The canteen is to be apportioned on the basis of employees: The powerhouse is to be...
Using no more than the average number of words in the pieces you have read, draft an advertisement for your own job (or one you have had in the past). How clear and effective have you been in...
As part of a major expansion, the business bought on credit equipment at a cost including installation of $77 968 ($70 880 + $7088 GST). Installation and commissioning were completed on 1 February...
Machinery was purchased on 31 August 2021 for $81 400 ($74 000 + $7400 GST), and installed and commissioned on 30 September 2021 for $9020 ($8200 + $820 GST) with no residual value. Depreciation is...
From the following information of J Patricia, prepare an accounts receivable control account for August 2022. Accounts receivable control balance 31 July 2022 Transactions for August Cash sales...
The business made a credit purchase on 1 July 2021 of a large-capacity integrated compressor and generator, which is grouped as plant and machinery. It is to be depreciated using the diminishing...
On 1 July 2021, equipment costing $11 000 ($10 000 + $1000 GST) was purchased for cash. It is to be depreciated at 30% p.a. using the diminishing balance depreciation method. Prepare: a a diminishing...
A firm must plan production for the next six months. Each unit costs $250 to produce and it has an inventory holding cost of $10 per unit per month based on ending inventory levels. The cost to hire...
Suppose the spot and six-month forward rates on the Norwegian krone are Kr 5.78 and Kr 5.86, respectively. The annual risk-free rate in the United States is 3.8 percent, and the annual risk-free rate...
Describe three alternative linear cost functions.
Describe three alternative linear cost functions.
Describe three alternative linear cost functions.
How might we evaluate the risk of a security when making an investment decision?
If an entrepreneur uses social media to obtain startup financing from willing providers, this is called an initial public offering debt financing angel investing equity financing crowdfunding
You are instructed by the Senior Finance Manager to evaluate the following bonds and offer your valuable recommendation: Coupon rate (annual Bond payments) A B 0% 0% 4% 8% Maturity (years) 15 10 15...

In order to identify costs that relate to a specific product, an allocation base should be chosen

Question:

Step by Step Answer:

b Has a cause and effect relationship An allocation base should ideally have a cause ...View the full answer

Cost Accounting

Students also viewed these Business questions