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

Levine Company Levine Company produces two products: A and B The company has three overhead functions that are required for both products. Below is production information for Products A and B: The company produces 800 units of Product A and 8,000 units of Product B each period. The overhead functions have the following hourly costs: Refer to Levine Company If total overhead is assigned to A and B on the basis of direct labor hours,Product B will have an overhead cost per unit of

(Multiple Choice)

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Question 121

______________________________ refers to the number of different processes through which a product flows.

(Short Answer)

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Question 122

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.What is the cost per driver unit for the withdrawal activity?

(Multiple Choice)

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Question 123

If only one or two overhead cost pools are used,

(Multiple Choice)

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Question 124

Direct materials are normally considered unit-level costs.

(True/False)

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Question 125

Unit level costs occur once for each unit produced.

(True/False)

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Question 126

Which of the following is considered a value-added activity?

(Multiple Choice)

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Question 127

The actual time taken to perform all necessary manufacturing functions in a process is referred to as _________________________. or

(Short Answer)

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Question 128

Costs that are associated with the production of a group of similar products at the same time are referred to as ______________________________.

(Short Answer)

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Question 129

It is necessary for an organization to define its processes before attempting to establish relationships among company activities.

(True/False)

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Question 130

Chocolate Delights Company produces baking chocolate for use by commercial organizations.The company is analyzing its operations in preparation for reconfiguring its factory setup. Currently,each batch of chocolate requires the following processes: a)Calculate the total cycle time necessary to manufacture a batch of chocolate. b)Identify the value-added functions c)Calculate the manufacturing cycle efficiency (MCE)of this process. d)Assume that a management consultant has established a goal that Chocolate Delights Company increase its MCE to 5 percent or greater.Identify three possible areas in which the company could reduce its cycle time.

(Essay)

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Question 131

Levine Company Levine Company produces two products: A and BThe company has three overhead functions that are required for both products. Below is production information for Products A and B: The company produces 800 units of Product A and 8,000 units of Product B each period. The overhead functions have the following hourly costs: Refer to Levine Company If total overhead is assigned to A and B on the basis of overhead activity hours used,the total product cost per unit assigned to Product B will be

(Multiple Choice)

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Question 132

The amount of time between the development and the production of a product is

(Multiple Choice)

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Question 133

An activity that a customer is willing to pay for and increases the worth of a product is referred to as a _________________________ activity.

(Short Answer)

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Question 134

If activity-based costing is implemented in an organization without any other changes being implemented,total overhead manufacturing costs will

(Multiple Choice)

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Question 135

A chart that indicates each step in a production process is referred to as a _________________________.

(Short Answer)

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Question 136

Use of activity-based costing and activity-based management requires

(Multiple Choice)

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Question 137

For a CPA firm,how would the costs of continuing education for audit managers be classified?

(Multiple Choice)

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Question 138

Levine Company Levine Company produces two products: A and BThe company has three overhead functions that are required for both products. Below is production information for Products A and B: The company produces 800 units of Product A and 8,000 units of Product B each period. The overhead functions have the following hourly costs: Refer to Levine Company If total overhead is assigned to A and B on the basis of direct labor hours,Product B will have an overhead cost per unit of

(Multiple Choice)

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Question 139

When a company is labor-intensive,the cost driver that is probably least significant would be

(Multiple Choice)

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Question 140

Showing 121 - 140 of 176

______________________________ refers to the number of different processes through which a product flows.

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.What is the cost per driver unit for the withdrawal activity?

If only one or two overhead cost pools are used,

Direct materials are normally considered unit-level costs.

Unit level costs occur once for each unit produced.

Which of the following is considered a value-added activity?

The actual time taken to perform all necessary manufacturing functions in a process is referred to as _________________________. or

Costs that are associated with the production of a group of similar products at the same time are referred to as ______________________________.

It is necessary for an organization to define its processes before attempting to establish relationships among company activities.

The amount of time between the development and the production of a product is

An activity that a customer is willing to pay for and increases the worth of a product is referred to as a _________________________ activity.

If activity-based costing is implemented in an organization without any other changes being implemented,total overhead manufacturing costs will

A chart that indicates each step in a production process is referred to as a _________________________.

Use of activity-based costing and activity-based management requires

For a CPA firm,how would the costs of continuing education for audit managers be classified?

When a company is labor-intensive,the cost driver that is probably least significant would be

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

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