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jek_recluse [69]
3 years ago
12

Robert Wilkins has prepared the following list of statements about process cost accounting. Identify each statement as true or f

alse. 1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. 2. A process cost system is used when each finished unit is indistinguishable from another. 3. Companies that produce soft drinks, movies, and computer chips would all use process cost accounting. 4. In a process cost system, costs are tracked by individual jobs. 5. Job order costing and process costing track different manufacturing cost elements. 6. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead. 7. Costs flow through the accounts in the same basic way for both job order costing and process costing. 8. In a process cost system, only one work in process account is used. 9. In a process cost system, costs are summarized in a job cost sheet. 10. In a process cost system, the unit cost is total manufacturing costs for the period divided by the equivalent units produced during the period.
Business
1 answer:
PolarNik [594]3 years ago
7 0

1. That statement is true

The main goal of process costing is to  assign the cost of production to a group of homogeneous product rather than putting it individually. This costing process is very effective for similar products on large quantity, but very inefficient if the company produce different variety of products.

2. That statement is true

The cost of production tend to be unique for different product variation. Since we intend to apply costs to similar products that are mass-produced in a continuous fashion, using process cost accounting to products that are not  indistinguishable from another could create a huge error in predicting the total cost of production.

3.  That statement is false

Like stated above, product cost accounting is only effective for companies that produce  indistinguishable products.  Soft drinks, movies, and computer chips are products that are completely different from one another. Using product cost accounting  for these products would be inefficient.

4. That statement is false

In a process cost system, costs are tracked as a whole. For example, let's say you mass produces 708.000 bottles of root beer in a month.  (the amount is too much to be counted individually)

Rather than counting the cost to manufacture the physical bottle individually, process cost systems just use the cost of manufacturing the bottles as a whole.

5. That statement is False

When we manufacture a product, it consists of several elements that make up the whole product.

For example, when producing a bottle of beer, the cost made up of several elements such as the bottle, the fluid, the labels and the cap,

process costing only track cost for one single element. (such as the cost to produce only the bottle)

6. That statement is True

The different between the two of them only on the elements that they are tracking. Job order costing counts all elements of the product. Job order costing on the other hand only count one single element of the product.

7. That statement is true

Regardless of your choice to use either job order costing or process cost system, the materials that used for the productions are completely the same. This mean that that cost would flow through the accounts in the same basic way.

8. That statement is false

You would use several works in process account. But, you need to distinguish the cost of producing each elements of the products separately. Separating such cost would help the management teams to identify the elements that cause the most burden for the company. They need this information so they can find source of materials that can cut down the cost.

9. That statement is false

The job cost sheet consist of several different factors that influence the cost of production, such as  salaries and factory overhead. Process cost system only want to know the cost for one single element of the product, It does not need other information.

10. That statement is true

After adding up all the cost for each elements of the product, this system require you to divde it all to the total units that produced during the period. This would provide the management team with the information regarding the estimated cost of producing one single product. It would help them determining the selling price.

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The ABC Corporation is considering introducing a new product, which will require buying new equipment for a monthly payment of $
scZoUnD [109]

Answer:

5500 units per month must be sold to earn the required profit

Explanation:

The target profit is the amount of profit that a business wants to earn. To calculate the target profit, we can use the break even analysis and include the factor for target profit under its formula and calculate the units and the dollar sales needed to earn the target profit.

In this case, the target profit is $50000 per month.

The break even in units = Fixed cost / contribution margin per unit

Contribution margin per unit = selling price per unit - variable cost per unit

To calculate units required for target profit, we will add the target profit to the fixed cost and divide by the contribution margin per unit

Target profit units = (fixed cost + target profit) / Contribution margin per unit

So,

Contribution margin per unit = 20 - 10 = $10 per unit

Target profit units = (5000 + 50000) / 10

Target profit units = 5500 units per month

7 0
3 years ago
Which of the following is TRUE regarding unexpected expenses?
kaheart [24]

Answer:

They should be planned for.

Explanation:

Unexpected expenses include emergencies and other unforeseen costs that a person incurs in day to day activities.  These unexpected expenses must be paid for, which means resources must come from somewhere to effect the payments.

The best way to cater to unexpected expenses is to include them in the budget. Contingencies is the term used to describe funds kept aside to settle unexpected expenses. Without a contingency arrangement, unexpected expenses will affect the budget and a person's ability to pay normal bills.

4 0
2 years ago
Assuming the required-reserve ratio is 20%, after a $5 billion purchase of securities (government bonds) from the non-bank publi
9966 [12]

Answer: $25 billion

Explanation:

The increase in cash as a result of a deposit into the banking system, no cash leakages and a required-reserve ratio is:

= Deposit into banking system * Money multiplier

Money multiplier = 1 / Required reserve ratio

= 1 / 20%

= 5

Checkable deposit increase:

= 5 billion * 5

= $25 billion

8 0
2 years ago
QUESTION 1
mezya [45]

The correct option is C (1836)

<u>Explanation:</u>

From the given data, all the frims with the given market share are taken. the 8 more firms are taken into account which have 1 percent market share. Thsu, 8 is multiplied with 1 pecent of share.

All the square roots are calculated in order to calculate the HHI

HHI = Summation of sqrt Si

= (36)^2 + (3)^2 + (3)^2 + (6)^2 + (16)^2 + (6)^2 + (4)^2 + (7)^2 + (11)^2 + 8(1)^2

= 1836

Therefore, the correct answer is C (1832)

4 0
3 years ago
Past behavior of demand is indicative of its future behavior, therefore past demand data can be used to construct demand forecas
Elden [556K]

This statement is the underlying principle of the __time series analysis___ method.

Time series analysis method is a statistical technique that is often employed to determine how a variable changes over a series of time.

Time series analysis has been used in sciences, economics, and mathematics to determine changes of a given data variable over time and in relation to other variables in the same time period.

The wide application of the time series analysis method in various fields is dictated by the need to construct forecasts and make predictions, that is, using past realities to guess future realities.

Thus, this statement that the underlying principle of time series analysis method is based on the fact that past behavior of demand is indicative of its future behavior is widely accepted.

Learn more about time series analysis here: brainly.com/question/19485270

5 0
2 years ago
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