Question 1

Which of the following is typically regarded as a cost driver in traditional accounting practices?

Accepted Answer

A) number of purchase orders processed 
B) number of customers served 
C) number of transactions processed 
D) number of direct labor hours worked 
A) number of purchase orders processed 
B) number of customers served 
C) number of transactions processed 
D) number of direct labor hours worked D

Question 2

The sum of value-added processing time plus non-value added time equals __________________________.
or
or

Accepted Answer

cycle (lead time cycle time lead time

Question 3

Traditionally,managers have focused cost reduction efforts on

Accepted Answer

A) activities. 
B) processes. 
C) departments. 
D) costs. 
A) activities. 
B) processes. 
C) departments. 
D) costs. D

Question 4

Discuss the characteristics of a company for which ABC would be appropriate.

Accepted Answer

Companies having the following character

Question 5

An activity center is an organizational unit

Accepted Answer

A) that makes a single product or performs a single service. 
B) in which only value-added activities are performed. 
C) that incurs only unit,batch,or product/process level costs. 
D) for which management wants separate activity information. 
A) that makes a single product or performs a single service. 
B) in which only value-added activities are performed. 
C) that incurs only unit,batch,or product/process level costs. 
D) for which management wants separate activity information.

Question 6

How has the increase in product variety affected the costs of American business?

Accepted Answer

The increase in product variety has incr

Question 7

Activity-based costing systems generally use volume-based cost drivers.

Accepted Answer

A) True 
 B)False

Question 8

Product costing systems in use over the last 40 years

Accepted Answer

A) concentrated on using multiple cost pools and cost drivers. 
B) were often technologically incapable of handling activity-based costing information. 
C) have generally been responsive to changes in the manufacturing environment. 
D) have been appropriate for managerial decision purposes as long as they met the requirements of generally accepted accounting principles. 
A) concentrated on using multiple cost pools and cost drivers. 
B) were often technologically incapable of handling activity-based costing information. 
C) have generally been responsive to changes in the manufacturing environment. 
D) have been appropriate for managerial decision purposes as long as they met the requirements of generally accepted accounting principles.

Question 9

Mass customization is closely associated with

Accepted Answer

A) yes no no yes 
B) yes yes yes no 
C) no yes no no 
D) yes no yes yes 
A) yes no no yes 
B) yes yes yes no 
C) no yes no no 
D) yes no yes yes

Question 10

A value chart indicates

Accepted Answer

A) all steps in a process and the time it takes for them to be completed. 
B) the value-added steps in a process and the time it takes for them to be completed. 
C) the time and cost of all value-added steps in a process. 
D) the time and costs of all value-added and non-value-added steps in a process. 
A) all steps in a process and the time it takes for them to be completed. 
B) the value-added steps in a process and the time it takes for them to be completed. 
C) the time and cost of all value-added steps in a process. 
D) the time and costs of all value-added and non-value-added steps in a process.

Question 11

An activity-based costing system should be evaluated with regard to the benefits it can provide an organization versus the costs of implementing it.

Accepted Answer

A) True 
 B)False

Question 12

Machine setup is normally considered a batch-level cost

Accepted Answer

A) True 
 B)False

Question 13

Machine setup is normally considered a unit-level cost

Accepted Answer

A) True 
 B)False

Question 14

Video Corporation Video Corporation has two product lines: LCD televisions and projection televisions.The company has budgeted the following production and overhead costs for the upcoming year:
  Refer to Video Corporation.If the company uses total direct labor hours to allocate factory overhead,the machine maintenance cost allocated to LCD TV's would be:

Accepted Answer

A) $51,923 
B) $55,385 
C) $69,231 
D) $72,000 
A) $51,923 
B) $55,385 
C) $69,231 
D) $72,000

Question 15

In the "new era" of manufacturing,good performance indicators are

Accepted Answer

A) production-based. 
B) sales-based. 
C) cost-based. 
D) consumer-based. 
A) production-based. 
B) sales-based. 
C) cost-based. 
D) consumer-based.

Question 16

Video Corporation Video Corporation has two product lines: LCD televisions and projection televisions.The company has budgeted the following production and overhead costs for the upcoming year:
  Refer to Video Corporation.If the company uses number of units produced to allocate factory overhead,the machine maintenance cost allocated to projection TVs would be:

Accepted Answer

A) $ 72,000 
B) $108,000 
C) $110,769 
D) $124,615 
A) $ 72,000 
B) $108,000 
C) $110,769 
D) $124,615

Question 17

Costs that are associated with the production of a single unit of a product are referred to as _________________________.

Accepted Answer

The answer of Costs that are associated with the production...

Question 18

Simultaneous engineering can be used to

Accepted Answer

A) reduce both product and process complexity. 
B) integrate activity-based costing with value chain analysis. 
C) reduce the time-to-market of new products through elimination of batch-level activities. 
D) reduce manufacturing cycle efficiency by reducing process waste. 
A) reduce both product and process complexity. 
B) integrate activity-based costing with value chain analysis. 
C) reduce the time-to-market of new products through elimination of batch-level activities. 
D) reduce manufacturing cycle efficiency by reducing process waste.

Question 19

Video Corporation Video Corporation has two product lines: LCD televisions and projection televisions.The company has budgeted the following production and overhead costs for the upcoming year:
  Refer to Video Corporation.If the company uses total direct labor hours to allocate factory overhead,the materials handing cost allocated to projection TVs would be:

Accepted Answer

A) $35,000 
B) $45,000 
C) $46,875 
D) $51,923 
A) $35,000 
B) $45,000 
C) $46,875 
D) $51,923

Question 20

Which of the following add customer value?

Accepted Answer

A) setup time 
B) storage time 
C) idle time 
D) processing time 
A) setup time 
B) storage time 
C) idle time 
D) processing time

Which of the following is typically regarded as a cost driver in traditional accounting practices?

The sum of value-added processing time plus non-value added time equals __________________________. or or

Traditionally,managers have focused cost reduction efforts on

Discuss the characteristics of a company for which ABC would be appropriate.

An activity center is an organizational unit

How has the increase in product variety affected the costs of American business?

Activity-based costing systems generally use volume-based cost drivers.

Product costing systems in use over the last 40 years

Mass customization is closely associated with

A value chart indicates

An activity-based costing system should be evaluated with regard to the benefits it can provide an organization versus the costs of implementing it.

Machine setup is normally considered a batch-level cost

Machine setup is normally considered a unit-level cost

In the "new era" of manufacturing,good performance indicators are

Costs that are associated with the production of a single unit of a product are referred to as _________________________.

Simultaneous engineering can be used to

Which of the following add customer value?

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Exam 4: Activity-Based Management and Activity-Based Costing

Which of the following is typically regarded as a cost driver in traditional accounting practices?

The sum of value-added processing time plus non-value added time equals __________________________. or or

Traditionally,managers have focused cost reduction efforts on

Discuss the characteristics of a company for which ABC would be appropriate.

An activity center is an organizational unit

How has the increase in product variety affected the costs of American business?

Activity-based costing systems generally use volume-based cost drivers.

Product costing systems in use over the last 40 years

Mass customization is closely associated with

A value chart indicates

An activity-based costing system should be evaluated with regard to the benefits it can provide an organization versus the costs of implementing it.

Machine setup is normally considered a batch-level cost

Machine setup is normally considered a unit-level cost

In the "new era" of manufacturing,good performance indicators are

Costs that are associated with the production of a single unit of a product are referred to as _________________________.

Simultaneous engineering can be used to

Which of the following add customer value?

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters