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    Emily96's Avatar
    Emily96 Posts: 3, Reputation: 1
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    #1

    Oct 30, 2013, 10:57 AM
    Under a traditional cost accounting system...
    Under a traditional cost accounting system,

    (A)overhead cost are assigned to individual products and then reallocated to cost centers on a single basis such as direct labor hours.

    (B)overhead cost for a product may change due to changes in a department's cost even though the product is not manufactured at all in that department.

    (C) cost are bit batched together as the product moves from on processing department to the next.

    (D) a small decrease in the overhead allocation base can result in a substantial decrease in a product's total cost, but not as much as when overhead costs are reduced directly.
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
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    #2

    Oct 30, 2013, 11:16 AM
    Homework again, we do not do it for you.
    Emily96's Avatar
    Emily96 Posts: 3, Reputation: 1
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    #3

    Oct 30, 2013, 11:33 AM
    Quote Originally Posted by ma0641 View Post
    Homework again, we do not do it for you.
    It isn't homework,there are review questions I need to study for my exams.. so if you don't have anything to say I suggest you keep your opinions to yourself!
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
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    #4

    Oct 30, 2013, 11:25 PM
    Under a traditional cost accounting system,

    (A)overhead cost are assigned to individual products and then reallocated to cost centers on a single basis such as direct labor hours.
    INCORRECT - Overheads are first allocated to production and service cost centres. Service centre costs are reallocated to production departments. Overhead rate is calculated for each production department applying appropriate base such DLH.

    (B)overhead cost for a product may change due to changes in a department's cost even though the product is not manufactured at all in that department.
    CORRECT - Service department do not directly produce goods.

    (C) cost are bit batched together as the product moves from on processing department to the next.
    CORRECT - Applied in process costing.

    (D) a small decrease in the overhead allocation base can result in a substantial decrease in a product's total cost, but not as much as when overhead costs are reduced directly.
    INCORRECT - Decrease in base will increase the overhead rate.

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