Which of the following statements is true of costing systems? A. ABC systems always result in...

Which of the following statements is true of costing systems?

A. ABC systems always result in overcosting of products.
B. ABC systems classify some indirect costs as direct costs helping to improve processes
C. Single-indirect cost pool systems always result in overcosting of products.
D. Single-indirect cost pool systems classify some direct costs as indirect costs.

Expert Solution

Statement B. i.e. ABC systems classify some indirect costs as direct costs helping to improve processes is true.

Activity-based costing is a costing method that assigns the various indirect costs and overhead costs to the product it relates with. All such kinds of costs are divided by the cost divers like hours, units and then allocated to individual products on the basis of cost drivers used by each product. These cost drivers are directly related to the products and hence indirectly helps to classify some indirect costs as direct costs.

Statement A & C are incorrect as they are the methods of allocating the indirect costs which can sometimes results in overcosting of products but now always.

Statement D is incorrect as Single-indirect cost pool systems never classify any direct costs as indirect costs as it just allocates the indirect cost on the basis of single rate system making the given statement untrue.

ekkarill92 answered 1 year ago

Determine which of the following statements are true and which are false. (a) There always exist...

Determine which of the following statements are true and which are false. (a) There always exist a Pareto efficient alternative. (b) There always exist a Pareto dominated alternative. (c) The best alternative according to Rawlsian Justice is always Pareto efficient. (d) The best alternative according to Borda rule is always Pareto efficient.

Which of the following statements is not always true with respect to the four rules of...

Which of the following statements is not always true with respect to the four rules of portfolio theory options: Portfolio realized returns are the weighted average of the realized returns of the individual securities included in the portfolio. Portfolio weights must sum to one. None of the answers is correct Portfolio risk measured as the standard deviation is the weighted average of the standard deviations of the individual securities included in the portfolio. Portfolio risk measured by beta is the...

Which of the following statements is always true? a. A price floor will lead to...

Which of the following statements is always true? a. A price floor will lead to an increase in consumer surplus. b. An increase in price will lead to an increase in producer surplus along a supply curve. c. An increase in price will lead to an increase in consumer surplus along a demand curve. d. A price ceiling will lead to an increase in consumer surplus.

Decide which of the following statements are True and which are False about equilibrium systems: True...

Decide which of the following statements are True and which are False about equilibrium systems: True False For the following reaction: H2(g) + F2(g) ⇌ 2HF(g) the values of K and Kp are not the same. True False A large value of K means the equilibrium position lies far to the left. True False For a reaction with K >> 1, the rate of the forward reaction is greater than the rate of the reverse reaction at equilibrium. True False For the following reaction:...

Determine which of the following statements are: (a) true for systems flowcharts only, (b) true for...

Determine which of the following statements are: (a) true for systems flowcharts only, (b) true for data flow diagrams only, (c) true for both or (d) true for neither. 1) Can be prepared using information technology tools 2) Clearly specifies responsibility for business processes 3) Commonly thought of as the one best way to represent an AIS 4) Incorporates verb phrases to label processes 5) Labels data flows between processes 6) May span multiple pages 7) Processes can be represented...

Which of the following statements is true of pooling arrangements? A. They result in overall risk...

Which of the following statements is true of pooling arrangements? A. They result in overall risk reduction for each individual participant in the pool. B. They increase the risk for each individual participant in the pool. C. They result in overall risk reduction for selected participants in the pool. D. They increase the risk for selected participants in the pool.

Which of the following statements are true? True False Magnetic field lines always start at a North...

Which of the following statements are true? True False Magnetic field lines always start at a North and end at a South pole. True False When placing a dipole magnet into a magnetic field, it will be accelerated perpendicular to the field lines. True False The force on a moving charge is perpendicular to both the field and its velocity. True False The larger the charge of a moving particle, the more it will accelerate inside of a magnetic field.

Decide which of the following statements are True and which are False about equilibrium systems: If...

Decide which of the following statements are True and which are False about equilibrium systems: If K = 8 for the reaction A + B ⇌ C + D, K will equal -8 for the reaction C + D ⇌ A + B For a reaction with K >> 1, the rate of the forward reaction is less than the rate of the reverse reaction at equilibrium. The value of K at constant temperature does not depend on the amounts...

Decide which of the following statements are True and which are False about equilibrium systems: The...

Decide which of the following statements are True and which are False about equilibrium systems: The value of K at constant temperature depends on the amounts of reactants and products that are mixed together initially. For a reaction with K >> 1, the rate of the forward reaction is less than the rate of the reverse reaction at equilibrium. A large value of K means the equilibrium position lies far to the left. For the following reaction: CaCO3(s) ⇌ CaO(s)...

1- Which of the following statements is NOT true? Basic shares outstanding are always included in...

1- Which of the following statements is NOT true? Basic shares outstanding are always included in fully diluted shares outstanding. Fully diluted shares outstanding include all potentially dilutive securities that have been issued. Fully diluted shares outstanding can not decrease unless shares are repurchased. Basic shares outstanding are always equal to or less than fully diluted shares outstanding 2- An analyst has built a forecast showing a rapidly rising Fixed Asset Turnover Ratio. What error has the analyst likely made?...

Question