Question

1.what is the difference between a period and a product cost?

2.What is the difference between a fixed cost and a variable cost?

3.What is the definition of the relevant range?

4.What are the 3 costs that are considered to be product costs?

5.How do fixed and variable costs behave within the relevant range?

6.How do we calculate the pre-determined over head rate?

7.What is the pre-determined rate used for ?

8.What is the difference between over and under applied?

9.What are the 3 allocation bases that we can use to calculate the pre-determined rate?

10.Total manufacturing costs consists of what three cost categories?

Answer #1

As per our guidelines if more than 1 questions are asked we have to answer minimum 4 and due to time binding of submitting answers i tried my level best to answer many questions hope you will understand

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What is the difference between period and product costs ?

What is the difference between a fixed cost and a variable cost
and why are both of these costs important to the accounting
process?

What is the difference between a fixed cost and a variable cost
and why are both of these costs important to the accounting
process?

Questions:
1. What do we mean by cost behavior?
2. When activity increases, does the unit variable cost increase,
decrease or remain the same?
3. When activity decreases, does the unit fixed cost increase,
decrease or remain the same?
4. When activity decreases, does total variable cost increase,
decrease or remain the same?
5. When activity increases, does total fixed cost increase,
decrease or remain the same?
6. Define the following:
a. Gross margin
b. Contribution margin
7. What are...

1 A company makes two products: tables and chairs. While
performing a multi-product Cost-Volume-Profit Analysis for this
company, you noticed that break-even sales INCREASED due
to
A a decrease in the total fixed cost.
B a decrease in the variable cost per unit for tables.
C a decrease in the selling price per unit for tables.
D an increase in the selling price per unit for chairs.
2 A company makes two products: tables and chairs. While
performing a multi-product...

Chapter 5 Cost-Volume-Profit Relationships
What is the Contribution income statement?
__________________________
__________________________
__________________________
__________________________
__________________________
What is the gross profit
ratio?_____________________________________________
What is the contribution margin
ratio?______________________________________
What is the break-even
point?_____________________________________________
Give 3 ways of stating breakeven: (relating items from the
contribution income statement)
_____________________________
_____________________________
_____________________________
What is the formula to find the breakeven number of
units?____________________________
How can you determine the number of units necessary to attain a
certain level of profit?
_____________________________________________________________________________
How can you determine...

Cost allocation
Product A
Product B
Total
sales volume (units)
360
200
560
Revenue
$4,000
$24,000
$28,000
Variable costs:
direct materials
$800
$1,600
$2,400
direct labor
$1,600
$4,000
$5,600
Contribution margin
$1,600
$18,400
$20,000
Fixed costs
$16,800
Profit
$3,200
a) Allocate the fixed costs between products A and B. Use
direct labor dollars as the cost driver.
allocation rate=$ per ___________ DL$
allocated costs for A=$ __________
allocated costs for B=$ ___________
b) Compute the profit margins for products A and...

2. This question deals with the costs a hospital faces.
a. What is the difference between short run costs and long run
costs?
b. Give an example of a cost that is fixed in the short run and
one that is variable in the short run for a hospital.

2. What is sunk cost? What is the difference between the fixed
cost and a sunk cost?

Chapter 5 Cost-Volume-Profit Relationships
The dashed lines indicate a "Fill in the blank"
area
1) What is the Contribution income statement?
__________________________
__________________________
__________________________
__________________________
__________________________
2) What is the gross profit
ratio?_____________________________________________
3) What is the contribution margin
ratio?______________________________________
4) What is the break-even
point?_____________________________________________
5) Give 3 ways of stating breakeven: (relating items from the
contribution income statement)
_____________________________
_____________________________
_____________________________
6) What is the formula to find the breakeven number of
units?____________________________
7) How can you determine...

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