All categories

2 years ago

Under activity-based costing, nonmanufacturing costs ______.

Business

1 answer:

algol [13]2 years ago

6 0

Under activity-based costing, non manufacturing costs may be allocated to products based on cause

For better understanding, lets explain the term

Activity based costing is commonly described as an overhead cost-allocation system that shares overhead to different activity cost pools and gives each of the activity cost pools to products or services through of cost drivers that shows the activities used.

It is usually based on the cause or motives under activity based costing is manufacturing cost allocation. That is the cause of its use.

From the above. we can say the answer Under activity-based costing, non manufacturing costs may be allocated to products based on cause is correct

Learn more from:

brainly.com/question/15077504

You might be interested in

What's two examples of a direct competition?

densk [106]

Answer and Explanation:

Direct competition is a type of competition where two or more businesses offers the same kind of product and compete in the similar market.

The examples like dominos versus pizza hut in terms of food, HP versus Dell in terms of laptop

So in this examples they sell the same kind of products and compete each other

5 0

2 years ago

CA1.4 (LO 1) (Financial Accounting) Omar Morena has recently completed his first year of studying accounting. His instructor for

natima [27]

Answer:

The complete answers are below.

Explanation:

a) The main difference between Financial Accounting and Managerail Accounting is its purposes and the stakeholders who make use of the information that each one provides.

While financial accounting refers to the aggregation of accounting information in the financial statements, management accounting refers to the internal processes used to account for business transactions.

For instance: Financial accounting reports on the results of an entire business, Managerial accounting reports at a more detailed level. Financial accounting must comply with various accounting standards, whereas managerial accounting does not have to comply with any standards when information is compiled for internal consumption.

b) The financial statements most frequently provide are: Balance Sheet or Financial Position, Income Statement, Statement of cash flows and Statement of Changes in Equity.

c) In general, financial reports and financial statements differ in the formal status of financial statements in business and accounting, and these respond to standards such as GAAP and IFRS. While the financial reports have a format or presentation rules given by management, the financial statements, in the other hand, are prepared on regular basis as specific entities are required to do so according to applicable laws. It can be said that financial accounting provides financial statements and managerial accounting is responsible for financial reports.

4 0

2 years ago

Jay-cee corporation had 20,000 shares of $4 par value common stock outstanding on january 1. on january 20, the company purchase

Tatiana [17]

19000 x 5 = $95,000 total to common

3 0

2 years ago

Suppose Ike’s Bikes is currently producing 100 bikes per month in its only factory. Its short-run average total cost is

Naddika [18.5K]

The short-run average total cost of Ike's Bikes of producing 100 bikes is $360.

<h3>What is the short-run average total cost ?</h3>

The short-run is a production period where some of the factors used in the production process are fixed and others are variable. The short-run average total cost is the total cost divided by total output. Total cost is the sum of fixed cost and variable cost.

Please find attached the complete question. To learn more about average cost, please check: brainly.com/question/26959638

6 0

1 year ago

Manta Ray Company manufactures diving masks with a variable cost of $31. The masks sell for $40. Budgeted fixed manufacturing ov

riadik2000 [5.3K]

Answer:

When there is no change in the beginning and ending units of inventory i.e the units sold are equal to the units produced,the income under variable and absorption costing remains the same which is the condition in the given question.

Explanation:

If we have 80,000 units produced and sold then the income under both methods will be the same.

Manta Ray Company

Income Statement Variable Costing

Sales $40*80,000= $ 3200,000

Variable Costs $ 31*80,000= $ 2480,000

Contribution Margin $ 720,000

Less Fixed Costs $ $712,800

Gross Profit $ 7200

Manta Ray Company

Income Statement Absorption Costing

Sales $40*80,000= $ 3200,000

Variable Costs $ 31*80,000= $ 2480,000

Fixed Costs $ $712,800

Gross Profit $ 7200

If there is an increase in the inventory units ( ie. production is less than the Sales) the fixed manufacturing overhead cost is released from inventory and deducted from variable income.

Similarly when the inventory units decrease ( ie. production is more than the Sales) the fixed manufacturing overhead cost is deferred from inventory and added to variable income.

8 0

3 years ago