A by-product is best described as *   a. A product that s produced from materials that would otherwise be considered scrap. b. A product that has a lower selling price than the main product. c. A product manufactured along with the main product, a sales value that does not cover its cost of production. d. A product that usually yields a small amount of revenue when compared to the revenue from the main product

Q: Product costs are also called Select one: O a. Indirect material costs. O b. Indirect Labor costs. O…

A: Cost are basically divided between two category: 1. Product Costs 2. Period costs

Q: Total _____ costs remain unchanged when activity changes.     Fixed cost     Variable cost…

A: Cost: It refers to the aggregated amount that is spent on manufacturing a product.

Q: A downside to absorption casting is: A. not including fixed manufacturing overhead in the cost of…

A: Absorption costing demonstrates that all the expenses related to manufacturing a product are…

Q: The following costs arise in relation to production of a new product: (i)   Research and…

A: Lifetime cost of product includes total cost incurred over it's life time from designing,…

Q: Management Accounting) If fixed production costs are not allocated to manufactured products, this…

A: SOLUTION FIXED COST INCLUDES THE RENT OR MORTGAGE PAYMENT YOU PAY FOR YOUR FACTORY AND OFFICE…

Q: Which of the following statements is true regarding a company's segment margin? It is primarily used…

A: Solution: The true statement regarding a company's segment margin is that "It is primarily used to…

Q: Sales commissions incurred based on units of product sold during a given period is an example of a…

A: The product costs are the cost that are incurred to produce a product directly or indirectly.

Q: Which of the following statements is false? O a. Product costs are inventoriable costs O b. Product…

A: Product costs - these can be defined as costs incurred by the business while producing a good or…

Q: Which of the following statements is false ? a. Volume-based costing has typically resulted in…

A: There are two methods of costing that are in place generally. One is volume based costing and other…

Q: Throughput margin is equal to revenues minus direct materials and direct labor of the cost of goods…

A: Throughput margin = sales revenue - material cost .

Q: Does having a positive Contribution Margin always indicate that it is better to continue operations…

A: Contribution Margin is calculated by deduction variable costs from the sales revenue.

Q: Which of the following statements is true for a firm that uses variable costing? A. The cost of a…

A: Variable costing may be a strategy that as it were allocates variable costs to stock. This approach…

Q: Which of the following statements best describes a by-product? Multiple Choice   A product created…

A: A by-product is comparably lesser in terms of the total amount and is derived incidentally from the…

Q: Why is variable costing not in compliance with generally accepted accounting principles? a. Fixed…

A: The generally accepted accounting principles are following the absorption method for the valuation…

Q: For product costs to become expenses, The product must be completed The product must be finished The…

A: Cost of goods sold are considered as Expenses of the businesses. The cost of goods sold is…

Q: What factor, related to manufacturing costs, causes the difference in net earnings computed using…

A: Answer: Correct answer is option ( d) d. Absorption costing "inventories" all direct costs, but…

Q: ?Which of the following statements is false Activity-based costing typically provides less…

A: In order to solve in this question, we need to analyse the given statement one-by-one.

Q: Which of the following is NOT correct about Contribution concept? Select one: a. Contribution can…

A: 1. Contribution can be computed on total basis and per unit basis 2. contribution helps in…

Q: Cost−volume−profit analysis is NOT useful in​ ________.   A. determining the appropriate sales mix…

A: Cost volume profit analysis assesses the impact of different cost and revenue levels on the…

Q: In Make or buy decision ,irrelevant costs are :  Select one: a. manufacturing costs that will be…

A: Under make or buy decision, decision needs to taken whether we should manufacture the product or…

Q: d in the cost of the product b) that it is not really useful for managerial decisions c) that it…

A: A cost accounting system is a system of accounting that is helpful for the internal management to…

Q: Business Unit A, the supplying business unit, is selling to an outside market. It has excess…

A: Transfer price refers to the price which is used by the related parties to charge one another. For…

Q: Marginal Costing refers to product costing methods that exclude ________ from product costs a)…

A: Using marginal costing, only variable costs are included in product cost.

Q: . Which of the following is the best definition of a variable cost? A. A variable cost is one which…

A: Variable costs are the costs that vary on the basis of the level of output. They are determined per…

Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…

A: Cost - volume - profit analysis  It is used to determine the changes in cost and volume of sales…

Q: Which of the following is a false statement about scrap and by-products? Select one: a. Both scrap…

A: Scrap is the incidental residue from material used in production activities that can be recovered…

Q: Outputs with a negative sales value are: Select one: a. added to joint production costs and…

A: A joint production process' outputs can be divided into two categories such as those with a positive…

Q: tatement is true or false, and correct the false tatement(s): Manufacturing cost is called period…

A: Manufacturing cost is the cost incurred to manufacture units . It includes direct material , direct…

Q: Which among the following is not true about traditional costing system? a. This method allocates…

A: Traditional costing is allocating the factory overhead to products based on the volume of the…

Q: .A manufacturing company properly classifies and accounts for one product as a by-product rather…

A: Answer -  Option A is incorrect because Any by-product may be developed/further processed into a…

Q: For each of the following statements, indicate whether it is true, false, or uncertain. a. A cost is…

A: Total cost is the summation of fixed costs and variable costs incurred in the process of production.…

Q: As a general rule of​ economics, companies should only produce and sell units as long as​ ________.…

A: As a general rule of​ economics, companies should only produce and sell units as long as​ the…

Q: Which of the following statements is true? O a. Activity-based costing typically provides less…

A: Volume based costing represents the product costing where factory overhead is allocated to the…

Q: 1. The amount of increase or decrease in revenue that is expected from a particular course of action…

A: Differential costing is a technique where differential costs are considered relevant. Differential…

Q: Net operating income fluctuates directly with changes in sales volume.       Fixed production and…

A: Answer:- correct option is  Unit product costs can change as a result of changes in the number of…

Q: Direct materials are considered as product costs. *   True   False   Can be true, can be false   I…

A: The manufacturing cost includes the direct and indirect cost incurred on production.

Q: What is the estimated selling price of a product less any costs necessary to further process the…

A: Solution: Net realization value = estimated selling price of a product - costs necessary to further…

Q: The direct costing method is important because: a) allows the calculation of the break-even point…

A: The cost which is incurred directly into the product is called direct costing for example direct…

Q: Which of the following statements is true of raw materials? ) a) They are categorized as consumer…

A: Raw material known as Unprocessed material, that is basic material from which a final product to be…

Q: Competitors often inquire about a competitor's product's price. For a fee, iSuppli will deconstruct…

A: We need to account for various expenditures incurred in the business under different heads so that a…

Q: Which of the following is true of abnormal spoilage? a. It is considered to be part of production.…

A: Spoilage refers to materials or components that have been damaged, which are beyond the capacity of…