Ask Question
BusinessBusiness
8 December, 06:17

When manufacturing overhead costs are assigned to production in a process cost system, it means that

+2
Answers (1)
  1. 8 December, 06:44
    0
    When manufacturing overhead costs are assigned to production in a process cost system, it means that the business uses absorption costing system.

    Explanation:

    When manufacturing overhead costs are assigned to production in a process cost system, it means that the business uses absorption costing system.

    Absorption costing system is that where units of products and inventories are valued using full cost. Full cost implies that each product would be charged for an amount of the fixed production overhead in addition to the variable cost.

    The fixed overhead is charged using a predetermined overhead absorption rate.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “When manufacturing overhead costs are assigned to production in a process cost system, it means that ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Vaughn Manufacturing sells merchandise on account for $2500 to Morton Company with credit terms of 2/14, n/30. Morton Company returns $900 of merchandise that was damaged, along with a check to settle the account within the discount period.
Answers (1)
Suppose the 2017 adidas financial statements contain the following selected data (in millions). Current assets $4,570 Interest expense $160 Total assets 8,320 Income taxes 120 Current liabilities 3,060 Net income 260 Total liabilities 4,544 Cash 750
Answers (1)
The excess of fair value over implied value must be allocated to reduce proportionally the fair values initially assigned to: a. current assets. b. noncurrent assets. c. both current and noncurrent assets. d. none of the above.
Answers (1)
The reason why reinvested earnings have a cost equal to the required rate of return is because investors expect to earn on those funds, what they earn on new projects or purchases of other firms. This is called opportunity costs. True / False.
Answers (1)
Several years ago, Castles in the Sand Inc. issued bonds at face value of $1,000 at a yield to maturity of 6.2%.
Answers (1)
New Questions in Business
A master plan is devised for a. emergencies. b. long-range goals. c. investments. d. short-term goals
Answers (1)
Adama Company reported a net loss of $6,000 for the year ended December 31, 2014. During the year, accounts receivable increased $15,000, merchandise inventory decreased $12,000, accounts payable decreased by $20,000, and depreciation expense of
Answers (1)
2. Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study? a. Unemployment rate falls from 7.5 percent to 7.3 percent. b. Real GDP falls by 0.4 percent in the third quarter. c.
Answers (1)
Scenario 1: suppose savers either buy bonds or make deposits in savings accounts at banks. initially, the interest income earned on bonds or deposits is taxed at a rate of 20%.
Answers (1)
Charm Co. owns a delivery truck with an original cost of $10,000 and accumulated depreciation of $7,000. Charm acquired a new truck by exchanging the old truck and paying $2,000 in cash.
Answers (1)
Home » Business » When manufacturing overhead costs are assigned to production in a process cost system, it means that
Sign Up Forgot Password?