Question 1

ABC should be used in which of the following situations?

Accepted Answer

A) single-product firms with multiple steps 
B) multiple-product firms with only a single process 
C) multiple-product firms with multiple processing steps 
D) in all manufacturing firms 
A) single-product firms with multiple steps 
B) multiple-product firms with only a single process 
C) multiple-product firms with multiple processing steps 
D) in all manufacturing firms

Question 2

What are the three classes of activities defined by activity-based management.What is customer response to each of these activities? What is management's reaction to each of these activities?

Accepted Answer

Value-added activities--increase the wor

Question 3

In allocating variable costs to products,

Accepted Answer

A) a volume-based cost driver should be used. 
B) direct labor hours should always be used as the allocation base. 
C) a company should use the same allocation base that it uses for fixed costs. 
D) a company should never use more than one cost driver. 
A) a volume-based cost driver should be used. 
B) direct labor hours should always be used as the allocation base. 
C) a company should use the same allocation base that it uses for fixed costs. 
D) a company should never use more than one cost driver.

Question 4

Lead time minus production time is equal to

Accepted Answer

A) idle time. 
B) storage time. 
C) non-value-added time. 
D) value-added time. 
A) idle time. 
B) storage time. 
C) non-value-added time. 
D) value-added time.

Question 5

Which of the following is not a drawback of mass customization?

Accepted Answer

A) The choices are too numerous. 
B) The potential for errors is great. 
C) Only a small percentage of available choices is normally selected. 
D) All of the above are drawbacks. 
A) The choices are too numerous. 
B) The potential for errors is great. 
C) Only a small percentage of available choices is normally selected. 
D) All of the above are drawbacks.

Question 6

ABC has been criticized for a variety of reasons.Discuss these criticisms.

Accepted Answer

The first criticism of ABC is that it re

Question 7

In an activity-based costing system overhead costs are first recorded in activity center pools before being recorded in a general ledger

Accepted Answer

A) True 
 B)False

Question 8

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 LCD TVs 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 9

The proportion of value added processing time to total cycle time equals __________________________________________________.
or

Accepted Answer

manufactur

Question 10

Describe the two-step process by which costs are allocated in an ABC system.

Accepted Answer

Costs must be accumulated in the general

Question 11

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 an activity-based costing (ABC)system to allocate factory overhead,the materials handing cost allocated to LCD TVs would be:

Accepted Answer

A) $23,077 
B) $28,125 
C) $30,000 
D) $45,000 
A) $23,077 
B) $28,125 
C) $30,000 
D) $45,000

Question 12

Management should strive to reduce or eliminate non-value added activities from a production process.

Accepted Answer

A) True 
 B)False

Question 13

Activity-based costing is appropriate for a company that has low overhead costs that are proportional to the unit volumes of products.

Accepted Answer

A) True 
 B)False

Question 14

Under activity-based costing,benchmarks for product cost should contain an allowance for

Accepted Answer

A) idle time. 
B) idle time and scrap materials. 
C) spoilage. 
D) None of the responses are correct. 
A) idle time. 
B) idle time and scrap materials. 
C) spoilage. 
D) None of the responses are correct.

Question 15

Manufacturing cycle efficiency is a measure of

Accepted Answer

A) bottlenecks. 
B) effectiveness. 
C) efficiency. 
D) quality. 
A) bottlenecks. 
B) effectiveness. 
C) efficiency. 
D) quality.

Question 16

The sum of the non-value-added time and the value-added time equals

Accepted Answer

A) inspection time. 
B) production time. 
C) the product life cycle. 
D) cycle time. 
A) inspection time. 
B) production time. 
C) the product life cycle. 
D) cycle time.

Question 17

Manufacturing cycle efficiency should be increased by employing which of the following techniques?

Accepted Answer

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

Question 18

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 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 19

Ada National Bank Ada National Bank had the following activities,traceable costs,and
Physical flow of driver units:
  The above activities are used by the Broken Arrow branch and the Choctaw branch:
  Refer to Ada National Bank.How much of the deposit cost will be assigned to the Choctaw branch?

Accepted Answer

A) $1,800 
B) $3,600 
C) $ 5,400 
D) $36,000 
A) $1,800 
B) $3,600 
C) $ 5,400 
D) $36,000

Question 20

Simultaneous engineering helps companies accomplish which of the following?

Accepted Answer

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

ABC should be used in which of the following situations?

What are the three classes of activities defined by activity-based management.What is customer response to each of these activities? What is management's reaction to each of these activities?

In allocating variable costs to products,

Lead time minus production time is equal to

Which of the following is not a drawback of mass customization?

ABC has been criticized for a variety of reasons.Discuss these criticisms.

In an activity-based costing system overhead costs are first recorded in activity center pools before being recorded in a general ledger

The proportion of value added processing time to total cycle time equals __________________________________________________. or

Describe the two-step process by which costs are allocated in an ABC system.

Management should strive to reduce or eliminate non-value added activities from a production process.

Activity-based costing is appropriate for a company that has low overhead costs that are proportional to the unit volumes of products.

Under activity-based costing,benchmarks for product cost should contain an allowance for

Manufacturing cycle efficiency is a measure of

The sum of the non-value-added time and the value-added time equals

Manufacturing cycle efficiency should be increased by employing which of the following techniques?

Ada National Bank Ada National Bank had the following activities,traceable costs,and Physical flow of driver units: The above activities are used by the Broken Arrow branch and the Choctaw branch: Refer to Ada National Bank.How much of the deposit cost will be assigned to the Choctaw branch?

Simultaneous engineering helps companies accomplish which of the following?

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

ABC should be used in which of the following situations?

What are the three classes of activities defined by activity-based management.What is customer response to each of these activities? What is management's reaction to each of these activities?

In allocating variable costs to products,

Lead time minus production time is equal to

Which of the following is not a drawback of mass customization?

ABC has been criticized for a variety of reasons.Discuss these criticisms.

In an activity-based costing system overhead costs are first recorded in activity center pools before being recorded in a general ledger

The proportion of value added processing time to total cycle time equals __________________________________________________. or

Describe the two-step process by which costs are allocated in an ABC system.

Management should strive to reduce or eliminate non-value added activities from a production process.

Activity-based costing is appropriate for a company that has low overhead costs that are proportional to the unit volumes of products.

Under activity-based costing,benchmarks for product cost should contain an allowance for

Manufacturing cycle efficiency is a measure of

The sum of the non-value-added time and the value-added time equals

Manufacturing cycle efficiency should be increased by employing which of the following techniques?

Ada National Bank Ada National Bank had the following activities,traceable costs,and Physical flow of driver units: The above activities are used by the Broken Arrow branch and the Choctaw branch: Refer to Ada National Bank.How much of the deposit cost will be assigned to the Choctaw branch?

Simultaneous engineering helps companies accomplish which of the following?

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