An accountant is an important person as he the power to control how funds are use and identify discrepancies. As an accounts student It is important to ensure you are 100% when it comes to concepts. Take up this first to help with your revision for the upcoming tests. All the best as you tackle them.
Is most useful to companies that manufacture small items such as household plastics
Gives companies more insight into total costs
Helps companies estimate revenues over a multiyear horizon
Has little in common with target pricing
Input is requested from suppliers and distributors
Customers input is essential to the target costing process
A key goal is to minimize costs over the product's useful life
Improvements are implemented in small incremental amounts
Support departments costs exceed budgetary estimates
Practical capacity is used as the allocation base
Support departments provide reciprocal services to other support departments
There is more than one operating department
The revenue from the byproducts is usually fairly large, and the accounting records will be distorted
Managers can time earnings by their decision when to sell byproducts
Managers have an incentive to stockpile byproducts
Both B and C are correct
The method makes no journal entries until the byproduct is sold
Revenues of the byproduct can be recorded as a reduction of cost of goods sold in the income statement
This method is the preferred method because of the matching principle
Revenues of the byproduct can be recorded in the income statement as revenue
Costs are assigned to individual products as assembly of the product occurs
Costs are assigned to individual products as disassembly of the product occurs
A single production process yields two or more products
Both B and C are correct
Planning to be efficient
Choosing the appropriate level of capacity
Planning day-to-day operational decisions
Eliminating nonvalue-added costs
Redesigning the plant layouts for more efficient processing
Redesigning products to use fewer resources
Eliminating nonvalue-adding costs
Choosing the apporiate level of capacity
It motivates individuals throughout the organization to act in concert
It coordinates forecasting sales and cost-driver activities, budgeting, and measuring and evaluating performance
It aids and coordinates the process of making decisions
It encourages short-term profitability