Briefly explain two factors that tend to result in product cost distortion under traditional, volume based product-costing

Question:

Briefly explain two factors that tend to result in product cost distortion under traditional, volume based product-costing system.

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

Identify and explain two factors that could affect managers choices for the number of times and points in processing to inspect units.
In a particular bond market, the two-year par yield at time t=0 is 5.65% and the issue price at time t=0 of a two-year fixed-interest stock, paying coupons of 7% annually in arrears and redeemed at...
Under what two conditions are volumebased traditional product costing systems most likely to distort product costs? How do activity-based costing systems provide more accurate costs when these two...
Display the TERM_DESC, COURSE_NAME, BLDG_CODE and ROOM for every course evertaught by faculty member John Blanchard. Question 2 Display the S_LAST, S_FIRST, COURSE_NAME, TERM_DESC and GRADE values...
Do we necessarily get an equivalence relation when we form the transitive closure of the symmetric closure of the reflexive closure of a relation?
A rectangular tank used to supply water for a Reynolds flow experiment is $230 \mathrm{~mm}$ deep. Its width and length are $W=150 \mathrm{~mm}$ and $L=230 \mathrm{~mm}$. Water flows from the...
What considerations are to be taken into account for the balancing of a reciprocating engine?
East-West Sports Shop is a small neighborhood sporting goods store. The shops owner, Sunny Hazel, has set up a system of internal control over sales to prevent theft and to ensure the accuracy of the...
For an SUV with a 6-cylinder engine: a) Create linear rpm vs frequency vs order chart and highlight fundamental order and its harmonics. (see slides 16-18 in Order Analysis_V2) b) From the dimensions...
The graph below shows the hours studied and the test grades on a biology test for 7 students. The red line on the graph can be used to approximate the test grade the average student receives for the...
How is the distinction between direct and indirect costs handled differently under volume-based versus activity- based costing systems?
List three factors that are important in selecting cost drivers for an ABC system.
What information does the auditor ask the attorney to provide on pending or threatened litigation?
Prepare the journal entry for each of the following transactions. Firm Body Corporation sells 12,000 shares of $10 par common stock for $13 per share. Firm Body Corporation sells 5,000 shares of $50...
Assume a company had no jobs in progress at the beginning of July and no beginning inventories. It started and completed only two jobs during July-Job Y and Job Z. The company uses a plantwide...
Stanley Company installs granite countertops in customers' homes. First, the customer chooses the particular granite slab, and then Stanley measures the countertop area at the customer's home, cuts...
Scenario 5: Jim is driving down the freeway when he spills his bag of Skittles onto the front passenger floor. Not wanting to lose a single sugary morsel, Jim leans down to retrieve the handful of...
Assume the following information: Direct materials $ 70,000 Direct labor $ 46,000 Variable manufacturing overhead $ 10,000 Fixed manufacturing overhead 25,000 Total manufacturing overhead $...
Show the list configuration resulting from each series of list operations using the List ADT of Figure 4.1 . Assume that lists L1 and L2 are empty at the beginning of each series. Show where the...
Illini Company, Inc. Balance Sheet as of 12/31/20X0 Assets Current Assets: Cash $1,500,000 Accounts receivable, net 18,000 Inventory 50,000 Total current assets 1,568,000 Equipment 90,000 Goodwill...
The flow of information is becoming increasingly important in supply chain management. Describe the key effects of information on supply chain performance in terms of responsiveness and efficiency...
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,...
Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. Angie has just received a degree in business and she is anxious to apply the...
Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. Angie has just received a degree in business and she is anxious to apply the...
Golden Gate Mining Co. (GGMC) currently has a gold mine operating in Canada and is looking to purchase another gold mine in Peru, operating as Inca Gold Inc. (ICI). You currently work for the CFO at...
Cokolo Inc. has entered into the following two derivatives contracts: Purchased put options on 1,000 Trenton Co. shares that have an exercise price of $52 per share and expire in 60 days Negotiated a...
As a financial manager (consultant), undertake an investigation on your allocated company to evaluate its strategic financial position. Prepare a business report for the board of directors of the...

Briefly explain two factors that tend to result in product cost distortion under traditional, volume based product-costing

Question:

Step by Step Answer:

Two factors that tend to result in product cost disto...View the full answer

Managerial Accounting

Students also viewed these Managerial Accounting questions