Podcast
Questions and Answers
What is the role of overheads in cost data?
What is the role of overheads in cost data?
- They need to be allocated in cost data (correct)
- They are not relevant in cost data
- They are directly traceable to products
- They are included in direct labor cost
What leads a manager to question the accuracy of reported cost of products and services?
What leads a manager to question the accuracy of reported cost of products and services?
- Barely covering the cost of the bid
- Direct labor costs being traceable
- High revenue coupled with low operating income (correct)
- Continual loss to a lower bidder
What are the two approaches of overhead allocation mentioned in the text?
What are the two approaches of overhead allocation mentioned in the text?
- Traditional and Activity Based Costing (ABC) (correct)
- Direct and Indirect allocation
- Unit based and Volume based
- Traceable and Non-traceable allocation
What is the nature of factory overheads mentioned in the text?
What is the nature of factory overheads mentioned in the text?
What is the purpose of collecting all overheads in a single cost pool?
What is the purpose of collecting all overheads in a single cost pool?
What is the appropriate approach for overhead allocation, as mentioned in the text?
What is the appropriate approach for overhead allocation, as mentioned in the text?
In the context of overhead allocation, what is the nature of factory overheads mentioned in the text?
In the context of overhead allocation, what is the nature of factory overheads mentioned in the text?
What factor leads a manager to question the accuracy of reported cost of products and services, as per the text?
What factor leads a manager to question the accuracy of reported cost of products and services, as per the text?
What is the role of overheads in cost data, based on the information provided?
What is the role of overheads in cost data, based on the information provided?
What is the need for allocation of overheads, as mentioned in the text?
What is the need for allocation of overheads, as mentioned in the text?
