Questions from Cost Management

Q: The external purchase price is $35 for a part that can

The external purchase price is $35 for a part that can be manufactured for $33 per unit; the $33 manufacturing cost includes $5 per unit allocated fixed cost. What is the per-unit savings to make rath...

Q: What is a production cost report? What are the five key

What is a production cost report? What are the five key steps in preparing a production cost report?

Q: What is the distinction between equivalent units under the FIFO method and

What is the distinction between equivalent units under the FIFO method and equivalent units under the weighted-average method?

Q: Identify the conditions under which the weighted-average method of process

Identify the conditions under which the weighted-average method of process costing is inappropriate.

Q: Specify the advantages of the weighted-average method of process costing

Specify the advantages of the weighted-average method of process costing in contrast to the FIFO method.

Q: What are the four objectives in the strategic role of cost allocation

What are the four objectives in the strategic role of cost allocation? Explain each briefly.

Q: What are some of the ethical issues of cost allocation?

What are some of the ethical issues of cost allocation?

Q: Explain the difference between joint products and by-products.

Explain the difference between joint products and by-products.

Q: What does the term reciprocal mean in the context of departmental cost

What does the term reciprocal mean in the context of departmental cost allocation?

Q: What are the three methods of departmental cost allocation? Explain how

What are the three methods of departmental cost allocation? Explain how they differ, which is the most preferred, and why.