Question 1

Which of the following involves analyzing the market and estimating what consumers will be willing to pay for a product with specific features?

Accepted Answer

A) Just-in-time inventory 
B) Target costing 
C) Total quality management 
D) Value engineering 
A) Just-in-time inventory 
B) Target costing 
C) Total quality management 
D) Value engineering

Question 2

Using the activity-proportion method results in

Accepted Answer

A) higher cost allocations than the activity rate method. 
B) lower cost allocations than the activity rate method. 
C) the same cost allocations as the activity rate method. 
D) higher or lower cost allocations than the activity rate method,depending on the circumstances. 
A) higher cost allocations than the activity rate method. 
B) lower cost allocations than the activity rate method. 
C) the same cost allocations as the activity rate method. 
D) higher or lower cost allocations than the activity rate method,depending on the circumstances.

Question 3

Linden,Inc.uses a 5,000 square foot factory space that it rents for $2,500 a month for all its manufacturing activities.Linden has decided to switch to an activity based costing system,and has identified its activities as follows: Preparation and Setup,Machining,Finishing,and Quality Control.500 square feet of the factory are used for machining,while 2,000 square feet (each)are used for Preparation and Setup and Quality Control.Finishing uses 500 square feet.When assigning indirect costs to each activity,how much factory rent should be assigned to the Preparation and Setup cost pool?

Accepted Answer

A) $250 
B) $500 
C) $1,000 
D) $2,000 
A) $250 
B) $500 
C) $1,000 
D) $2,000

Question 4

Target costing involves determining what the product price must be in order to meet the target cost and still provide a profit for the company's shareholders.Target costing involves determining what the product's cost must be,given its market price and desired profit.

Accepted Answer

A) True 
 B)False

Which of the following involves analyzing the market and estimating what consumers will be willing to pay for a product with specific features?

Using the activity-proportion method results in

Target costing involves determining what the product price must be in order to meet the target cost and still provide a profit for the company's shareholders.Target costing involves determining what the product's cost must be,given its market price and desired profit.

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgetary Planning

Standard Costing and Variances

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Exam 4: Activity-Based Costing and Cost Management

Which of the following involves analyzing the market and estimating what consumers will be willing to pay for a product with specific features?

Using the activity-proportion method results in

Target costing involves determining what the product price must be in order to meet the target cost and still provide a profit for the company's shareholders.Target costing involves determining what the product's cost must be,given its market price and desired profit.

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgetary Planning

Standard Costing and Variances

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters