The question is: Companies assign costs to products and services to: ( Select all that apply)...

The question is:

Companies assign costs to products and services to: ( Select all that apply)

A. Determine the best supplier of raw materials.

B. Understand product profitability

C. Establish selling prices.

D. value ending inventory

I believe it is B, C & D. I am just not sure if it is A as well?? I will paste some explanation given.

Companies usually assign costs to their products and services for two main reasons. First, it helps them fulfill their planning, controlling, and decision-making responsibilities. For example, a company may use product cost information to better understand each product’s profitability or to establish each product’s selling price. Second, it helps them determine the value of ending inventories and cost of goods sold for external reporting purposes. The costs attached to products that have not been sold are included in ending inventories on the balance sheet, whereas the costs attached to units that have been sold are included in cost of goods sold on the income statement.

It is very common for external financial reporting requirements to heavily influence how companies assign costs to their products and services.Because most countries (including the United States) require some form of absorption costing for external financial reports, many companies use some form of absorption costing for product costing purposes. In absorption costing, all manufacturing costs, both fixed and variable, are assigned to units of product—units are said to fully absorb manufacturing costs. Conversely, all nonmanufacturing costs are treated as period costs and they are not assigned to units of product.

This chapter and the next explain a common type of absorption costing system known as job-order costing. In this chapter we’ll discuss the role of job-order costing systems in planning, control, and decision making. Our focus will be on assigning manufacturing costs to individual jobs. In the next chapter, we will explain how job-order costing systems can be used to determine the value of ending inventories and cost of goods sold for external reporting purposes.Thank you!

Solutions

Expert Solution

Company assign cost to products and services to :-

B .Understand product profitability

C. Establishing selling price

D .Value ending inventory.

Assignment of cost to product and service has nothing to do with determining the best supplier of raw material. As we determine best supplier of raw material on the basis of price of raw material he is charging from us and the quality of raw material he is providing. Price of raw material is already available to compare. Note that assignment is a next step where we put all direct and indirect cost againstbeach product and service and then add a margin to determine selling price, find out cost of ending inventory available at the end and find out how much profit we have made by reducing all cost.

This, determining best supplier of raw material is a very initial stage whose data is readily available with is and assignment of cost has nothing to do with determining best supplier of raw material..

So correct answer is B, C & D only.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Explain what economists mean by “menu costs.” (select all that apply) A. Menu costs are the...

Explain what economists mean by “menu costs.” (select all that apply) A. Menu costs are the costs to seller of changing their product line B. Menu costs are the costs to seller of rapidly changing their prices. C. Menu costs are the costs to the employer of buying dinner for the company party D. Menu costs are the profit benefits to suppliers of rapidly changing their prices.

Which of the following scenarios contain nonbiased samples? Select all that apply. Select all that apply:...

Which of the following scenarios contain nonbiased samples? Select all that apply. Select all that apply: To estimate the mean height of students at her school, Kelly collects data by selecting a random group of students within her classroom. Elizabeth wants to estimate the mean grade point average of students at her school. She collects data by recording the grade point average of every 25th student on the list of students after a randomly selected first student. Andrew wants to...

List five types of common errors in taping. Select all that apply. Select all that apply....

List five types of common errors in taping. Select all that apply. Select all that apply. Temperature Remeasuring Using hand signals Tape length Marking Plumbing Tape not level Recording the results please do not copy and paste the wrong answer .

Question 3 This question could have multiple correct answers, select all that apply. Which of the...

Question 3 This question could have multiple correct answers, select all that apply. Which of the following statements are true about a typical histogram. It is used in descriptive statistics. It is used to summarize variable distributions. It can be used for numerical, ordinal, and nominal data. Its shape will tell you about what summary statistics should be calculated.

The goal of financial management is: (select all that apply) Question 1 options: A) To increase...

The goal of financial management is: (select all that apply) Question 1 options: A) To increase sales B) To maximize profits C) To increase stock price D) To maximize the intrinsic value of the firm select all the true statements about intrinsic value Question 2 options: The intrinsic value is not observable, but investors attempt to estimate it, and use their estimates as a basis for their investing decisions intrinsic value is always the same as the stock price stock...

The bonding in SH4 can be characterized by: Select all that apply Question options: A) polar...

The bonding in SH4 can be characterized by: Select all that apply Question options: A) polar B) nonpolar C) ionic D) electron deficient E) expanded octet F) resonance G) all sigma bonds H) all pi bonds I) a combination of sigma and pi bonds

Which species have no dipole moment? Select all that apply. Select all that apply. CH3N+2 HNO3...

Which species have no dipole moment? Select all that apply. Select all that apply. CH3N+2 HNO3 N3- CH3CONH2 O3

The nurse should question giving oral medications in which of these situations? (Select all that apply)...

The nurse should question giving oral medications in which of these situations? (Select all that apply) Answers: A Recent episode of bloody emesis B Client returned from a bronchoscopy which required local anesthesia of the gag reflex C Client is schedule for a non-invasive cardiac ultrasound within the hour D Client has a history of severe epigastric pain that suddenly disappeared an hour ago E Client has just been diagnosed with acute pancreatitis F Client has an elevated INR (prolonged...

Which of the following compounds cannot form a pyranose? Select all that apply. Select all that...

Which of the following compounds cannot form a pyranose? Select all that apply. Select all that apply from the following: D-allose D-altrose D-arabinose D-erythrose D-erythrulose D-fructose D-galactose D-glucose D-glyceraldehyde D-gulose D-idose D‐lyxose D-mannose D‐psicose D-ribose D-ribulose D-sorbose D-tagatose D-talose D-threose D‐xylose D-xylulose None of the above

How is coupling of transcription and translation possible in bacteria? Select all that apply. Select all...

How is coupling of transcription and translation possible in bacteria? Select all that apply. Select all that apply. as soon as an mRNA is transcribed, ribosomal subunits have physical access to it there are membranes separating the chromosome from ribosomes bacterial transcripts do not contain introns the primary transcript without the complete open reading frame bacterial ribosomes cannot translate the mRNA without pre-mRNA splicing

Subjects