ACCT 202 FINAL EXAM WITH GUARANTEED ACCURATE ANSWERS |VERIFIED
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Course
ACCT 202
Institution
ACCT 202
ACCT 202 FINAL EXAM
ACCT 202 FINAL EXAM WITH GUARANTEED ACCURATE ANSWERS |VERIFIED
Direct Material Costs - ACCURATE ANSWERAcquisition costs of all materials that eventually become part of the cost object (work in process and then finished goods), and that can be traced to the cost object in ...
ACCT 202 FINAL EXAM
ACCT 202 FINAL EXAM WITH GUARANTEED ACCURATE ANSWERS |VERIFIED
Direct Material Costs - ACCURATE ANSWER✅✅Acquisition costs of all
materials that eventually become part of the cost object (work in process and then
finished goods), and that can be traced to the cost object in an economically
feasible way.
Direct Labor - ACCURATE ANSWER✅✅the work of factory employees that
can be physically and directly associated with converting raw materials into
finished goods
overhead costs - ACCURATE ANSWER✅✅All fixed costs associated with
operating an establishment
Total Manufacturing Costs - ACCURATE ANSWER✅✅The sum of direct
materials, direct labor, and manufacturing overhead incurred in the current period.
, Plantwide overhead rate method - ACCURATE ANSWER✅✅A method of
assigning overhead costs to a product using a single overhead rate
Advantages of ABC overhead rate method - ACCURATE ANSWER✅✅-More
Effective and accurate overhead cost control and allocation.
-Additional Uses (more than production costs)
Disadvantages of ABC overhead rate method - ACCURATE ANSWER✅✅ABC
is not acceptable under GAAP for external financial reporting.
Advantages of Plantwide overhead rate method - ACCURATE ANSWER✅✅-
information is readily available
- easy to implement
- consistent with GAAP and can be used for external reporting
Disadvantages of Plantwide overhead rate method - ACCURATE
ANSWER✅✅•With many different products, assumptions may not be
reasonable.
•Overhead costs may not bear a relationship with direct labor hours
•All products may not use overhead costs in the same proportion
High - low method - ACCURATE ANSWER✅✅separates a mixed cost into its
fixed and variable elements by analyzing the change in cost between the high and
low activity levels
Advantages to High - low method - ACCURATE ANSWER✅✅-Straightforward
to use
-Need only aggregate data
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