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For which one of the following activities is it more difficult to obtain reasonable measures to allocate the costs?


A) Indirect labor
B) Machine setups
C) Plant administration
D) Quality control inspections

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The cost hierarchy categorizes costs according to whether they are capacity,product,customer,batch,or unit costs.Management of an airline would most likely consider new flights using existing aircraft on established routes as being which of the following?


A) Capacity costs.
B) Product costs.
C) Batch costs.
D) Unit costs.

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Resources used versus resources supplied.Here is information about resources for Business Unlimited,which produces trade publications for various industries: Resources used versus resources supplied.Here is information about resources for Business Unlimited,which produces trade publications for various industries: Required: a.Compute unused capacity for these items. b.Management wants no more than 20 percent of total costs to be incurred for unused capacity.How well is Business Unlimited doing? (Business Unlimited;Resources used versus resources supplied. ) Required: a.Compute unused capacity for these items. b.Management wants no more than 20 percent of total costs to be incurred for unused capacity.How well is Business Unlimited doing? (Business Unlimited;Resources used versus resources supplied. )

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a.
blured image_TB2144_00 b.The company has more un...

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Gem Systems Gem Systems uses an activity-based costing system.The company has gathered the following information concerning various cost pools and activity drivers; Gem Systems Gem Systems uses an activity-based costing system.The company has gathered the following information concerning various cost pools and activity drivers; The following data was collected and is specific to Job 150. Refer to Gem Systems.Calculate the unit cost for the Electricity Costs activity cost pool. A) $15.00 B) $ 3.50 C) $ 3.00 D) $ 5.00 The following data was collected and is specific to Job 150. Gem Systems Gem Systems uses an activity-based costing system.The company has gathered the following information concerning various cost pools and activity drivers; The following data was collected and is specific to Job 150. Refer to Gem Systems.Calculate the unit cost for the Electricity Costs activity cost pool. A) $15.00 B) $ 3.50 C) $ 3.00 D) $ 5.00 Refer to Gem Systems.Calculate the unit cost for the Electricity Costs activity cost pool.


A) $15.00
B) $ 3.50
C) $ 3.00
D) $ 5.00

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Describe activity-based management.Compare activity-based management to activity-based costing.How does activity-based costing improve overhead allocation in a manufacturing environment?

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Activity-based costing is a costing meth...

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Use the following information to answer the following questions.Magnolia Company makes products B546 and C245.Information for overhead costs and for the two products appears below.The company makes 100,000 units of product B546 each year and 20,000 units of product C245. Use the following information to answer the following questions.Magnolia Company makes products B546 and C245.Information for overhead costs and for the two products appears below.The company makes 100,000 units of product B546 each year and 20,000 units of product C245. What will be the total overhead cost of product C245 if all overhead is assigned using ABC and each activity above is treated as a separate pool? A) $8.60 per unit B) $90.00 per unit C) $15.00 per unit D) $47.00 per unit What will be the total overhead cost of product C245 if all overhead is assigned using ABC and each activity above is treated as a separate pool?


A) $8.60 per unit
B) $90.00 per unit
C) $15.00 per unit
D) $47.00 per unit

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Which of the following statements is true concerning how companies benefit from using an activity-based accounting system?


A) They have had few changes in activities over time and few corresponding changes have been made in the accounting system.
B) They have low overhead costs.
C) They have a narrow range of products.
D) They have wide variations in the volume of individual production runs and setups are costly (i.e. ,complex production methods) .

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What is the firststep in the activity analysis process used to implement Activity Based Management?


A) Chart,from start to finish,the activities used to complete the product or service
B) Classify activities as value-added or non-value-added
C) Eliminate non-value-added activities
D) Continuously improve and reevaluate the efficiency of value-added activities or replace them with more efficient activities

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Activity-based costing first assigns costs to activities,then to


A) the products based on each product's use of activities.
B) the plant based on each plant's use of activities.
C) the departments based on each department's use of activities.
D) the industry based on each industry's use of activities.

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Explain how activity-based management can reduce customer response time at your local motor vehicle administration.

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Customer response time at the local moto...

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In traditional costing systems overhead costs are allocated on volume of production or sales,.This methodology fails to take into consideration that the demand for overhead activities is also driven by which of the following?


A) Outside contracting activities.
B) Indirect labor activities.
C) Short-term labor activities.
D) Batch-related and product-sustaining activities.

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Gem Systems Gem Systems uses an activity-based costing system.The company has gathered the following information concerning various cost pools and activity drivers; Gem Systems Gem Systems uses an activity-based costing system.The company has gathered the following information concerning various cost pools and activity drivers; The following data was collected and is specific to Job 150. Refer to Gem Systems.What is the amount of electricity cost allocated to Job 150? A) $ 1,000 B) $15,000 C) $ 3,000 D) $ 5,000 The following data was collected and is specific to Job 150. Gem Systems Gem Systems uses an activity-based costing system.The company has gathered the following information concerning various cost pools and activity drivers; The following data was collected and is specific to Job 150. Refer to Gem Systems.What is the amount of electricity cost allocated to Job 150? A) $ 1,000 B) $15,000 C) $ 3,000 D) $ 5,000 Refer to Gem Systems.What is the amount of electricity cost allocated to Job 150?


A) $ 1,000
B) $15,000
C) $ 3,000
D) $ 5,000

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Use the following information to answer the following questions.Magnolia Company makes products B546 and C245.Information for overhead costs and for the two products appears below.The company makes 100,000 units of product B546 each year and 20,000 units of product C245. Use the following information to answer the following questions.Magnolia Company makes products B546 and C245.Information for overhead costs and for the two products appears below.The company makes 100,000 units of product B546 each year and 20,000 units of product C245. Use the information from the Magnolia Company and assume that Activity Based Costing is used,with each activity in its own cost pool.What is the rate per setup that should be used to assign set up cost to the two products? A) $900 per set up B) $400 per set up C) $100 per set up D) $200,000 per set up Use the information from the Magnolia Company and assume that Activity Based Costing is used,with each activity in its own cost pool.What is the rate per setup that should be used to assign set up cost to the two products?


A) $900 per set up
B) $400 per set up
C) $100 per set up
D) $200,000 per set up

Correct Answer

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Which statement best describes an activity center?


A) An organizational command post from which management controls activity.
B) A unit of the organization that performs a set of tasks.
C) A think-tank where managers select value-added activities.
D) A part of the organization that has been designated for in depth study of specific activities.

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Which one of the following activities is appropriate as a cost driver for material handling costs?


A) Number of direct labor hours used
B) Number of machine hours used
C) Number of raw material moves
D) Number of units produced

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Strategic uses of activity-based management include developing strategy and which of the following?


A) Long-range plans.
B) Focusing attention on departments.
C) Focusing attention on plants.
D) Focusing attention on managers.

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Use the following information to answer the following questions.Magnolia Company makes products B546 and C245.Information for overhead costs and for the two products appears below.The company makes 100,000 units of product B546 each year and 20,000 units of product C245. Use the following information to answer the following questions.Magnolia Company makes products B546 and C245.Information for overhead costs and for the two products appears below.The company makes 100,000 units of product B546 each year and 20,000 units of product C245. What will be the total overhead cost of product B546 if all overhead is assigned using ABC and each activity above is treated as a separate pool? A) $8.60 per unit B) $18.00 per unit C) $15.00 per unit D) $47.00 per unit What will be the total overhead cost of product B546 if all overhead is assigned using ABC and each activity above is treated as a separate pool?


A) $8.60 per unit
B) $18.00 per unit
C) $15.00 per unit
D) $47.00 per unit

Correct Answer

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Which of the following statement accurately describes activity-based costing (ABC) ?


A) ABC considers the entire plant to be one cost pool.
B) ABC uses a separate cost pool for each department.
C) ABC uses a cost pool for each activity center.
D) ABC uses a cost pool for each industry.

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Which of the following are true regarding activity-based costing (ABC) ?


A) ABC deals with learning about the cost of activities.
B) ABC rests on the premise that products require activities.
C) ABC rests on the premise that activities consume resources.
D) All of the answers are correct.

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Which term refers to categorizing costs according to whether they are capacity,product,customer,batch,or unit costs?


A) The cost hierarchy.
B) Activity-based costing.
C) Traditional costing.
D) None of the answers is correct.

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Showing 21 - 40 of 139

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