Questions from Cost Accounting

Q: Tesla Motors assembles the fully electric Model S-85 automobile at

Tesla Motors assembles the fully electric Model S-85 automobile at its Fremont, California, plant. The standard variable manufacturing cost per vehicle in 2017 is $58,800, which consists of: Direct ma...

Q: The Ride-On-Wave Company (ROW) produces a

The Ride-On-Wave Company (ROW) produces a line of non-motorized boats. ROW uses a normal-costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data a...

Q: Rob Kapito, the controller of Blackstar Paint Supply Company, has

Rob Kapito, the controller of Blackstar Paint Supply Company, has been exploring a variety of internal accounting systems. Rob hopes to get the input of Blackstar’s board of director...

Q: Differences in operating income between variable costing and absorption costing are due

Differences in operating income between variable costing and absorption costing are due solely to accounting for fixed costs. Do you agree? Explain.

Q: How does the planning of fixed overhead costs differ from the planning

How does the planning of fixed overhead costs differ from the planning of variable overhead costs?

Q: How does standard costing differ from actual costing?

How does standard costing differ from actual costing?

Q: What are the steps in developing a budgeted variable overhead cost-

What are the steps in developing a budgeted variable overhead cost-allocation rate?

Q: What are the factors that affect the spending variance for variable manufacturing

What are the factors that affect the spending variance for variable manufacturing overhead?

Q: Why is the term direct costing a misnomer?

Why is the term direct costing a misnomer?

Q: Explain the main conceptual issue under variable costing and absorption costing regarding

Explain the main conceptual issue under variable costing and absorption costing regarding the timing for the release of fixed manufacturing overhead as expense.