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3 years ago

Accounting systems that use standards for product costs are called budgeted cost systems. True False

Business

1 answer:

Yuri [45]3 years ago

7 0

Answer:

False.

Explanation:

Accounting systems that use standards for product costs are standard cost systems.

In Financial accounting, various business firms or companies use the standard cost systems to determine the variances or differences between the actual (real) cost of goods produced and the estimated cost for the goods that were produced by the company.

Hence, standard cost systems are used by business firms or companies as a strategic tool or technique for the management and control of costs, budget planning, and analyzing cost management performance at a specific period of time.

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Rent and maintenance expenses would most likely be allocated based on: Select one: a. Sales volume by department. b. Square feet

erik [133]

Answer: B. Square feet of floor space occupied.

Explanation: Rent is usually charged and allotted based on the size of the space occupied,a bigger work space will be enough to occupy more raw materials, machines,offices,finished goods and other things.

The maintenance cost of using a bigger space will most likely be higher than a smaller work space, bigger work space requires more lightening,more ventilation etc which will definitely increase the amount allotted or spent in servicing and carrying our maintenance on this electrical items.

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3 years ago

Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per a

hram777 [196]

Answer:

a) The president's pleasure is not justified because the budget performance was unfavorable in all the variable costs.

b) Revised Flexible Performance Report

Flexible Actual Variance

Budget Costs

Direct materials $354,900 $564,000 $209,100 U

Direct manufacturing labor 63,700 78,000 14,300 U

Direct marketing (distribution) labor 109,200 110,000 800 U

Flexible Static Variance

Budget Budget

Direct materials $354,900 $400,000 $45,100 U

Direct manufacturing labor 63,700 80,000 16,300 U

Direct marketing (distribution) labor 109,200 120,000 10,800 U

Explanation:

a) Data and Calculations:

Actual Costs Static Budget Variance

Direct materials 564,000 $400,000 $36,000 F

Direct manufacturing labor 78,000 80,000 2,000 F

Direct marketing (distribution) labor 110,000 120,000 10,000 F

b) Budgeted Prices:

Direct materials = $39

Direct labor = $7

Direct marketing labor = $12

Actual Output = 9,100

Flexible Budget:

Direct materials = $354,900 ($39 x 9,100)

Direct labor = $63,700 ($7 x 9,100)

Direct marketing labor = $109,200 ($12 x 9,100)

The flexible budget for direct materials, labor and marketing were flexed in line with actual output.

6 0

3 years ago

Cheyenne Corp. took a physical inventory on December 31 and determined that goods costing $200,000 were on hand. Not included in

tamaranim1 [39]

Answer:

$247,800‬

Explanation:

Inventory December 31

physical inventory on December 31 $200,000

Add: Goods purchased FOB shipping point $26,400

Add: Goods sold FOB Destination <u> $21,400</u>

$247,800‬

FOB Shipping Point - the purchaser gains title to the inventory at the shipping point, so when Pelzer shipped the goods, they belonged to Stallman.

FOB destination - means the seller maintains title until the merchandise reaches its destination, so since the goods have not reached their destination, the goods still belonged to Stallman

7 0

3 years ago

Jones Corporation purchases a piece of land for $300,000. Jones Corp. paid $3,000 in brokerage commissions, $10,000 to clear and

klasskru [66]

Answer:

$505,000

Explanation:

Cost of asset includes all the cost involved to acquire and construct the asset. In simple term all the costs that are necessary to make the asset usable are capitalised and added to the cost of the asset.

There are many cost in this question which need to be capitalized. Some is relevant to the building and other to the land account.

The costs specifically associated with the building account are

Construction of Building = $500,000

Construction Permit of Building = $5,000

Total cost to be capitalized in building account = $500,000 + $5,000 = $505,000

Delinquent property taxes is applicable on the land inclusive of building will incur even if there is no, building constructed on the land. So, this tax will be included in the Land value.

4 0

3 years ago

Read 2 more answers

GNP measures:Select one:a. the same things as GDP, but also includes financial assets.b. production by U.S. citizens wherever th

SCORPION-xisa [38]

Answer:

The correct answer is letter "B": production by U.S. citizens wherever they work in the world.

Explanation:

Gross National Product or GNP is one of a range of indicators economists use to calculate the economic output of a country. GNP is the market value of all goods and services produced by a country's citizens for one year, whether those goods were manufactured inside the country or produced elsewhere.

8 0

4 years ago