Question 1

Costs that support an overall production or service process are referred to as ______________________________.
or

Accepted Answer

organizati

Question 2

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 3

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 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 4

When a firm redesigns a product to reduce the number of component parts, the firm is

Accepted Answer

A)  increasing consumer value. 
B)  increasing the value added to the product. 
C)  decreasing product variety. 
D)  decreasing non-value-added costs. 
A)  increasing consumer value. 
B)  increasing the value added to the product. 
C)  decreasing product variety. 
D)  decreasing non-value-added costs.

Question 5

The first step in performing activity analysis is to prepare a process map.

Accepted Answer

A) True 
 B)False

Question 6

Business value-added activities add value to a product.

Accepted Answer

A) True 
 B)False

Question 7

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 units produced, Product B will have an overhead cost per unit of

Accepted Answer

A)  $84.00. 
B)  $88.64. 
C)  $110.64. 
D)  None of the responses are correct. 
A)  $84.00. 
B)  $88.64. 
C)  $110.64. 
D)  None of the responses are correct.

Question 8

Which of the following have an impact on long-term variable costs?

Accepted Answer

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

Question 9

Greenspan Company Greenspan Company manufactures two products: digital cameras and video cameras. The company uses an activity-based costing system. The annual production and sales volume of digital cameras is 10,000 units and of video cameras is 8,000 units. Direct costs for the digital cameras are $122; for the video cameras, direct costs are $153.
For overhead costs, there are three activity cost pools with the following expected activities and estimated total costs:
  Refer to Greenspan Company. Using ABC, the total cost per video camera is approximately:

Accepted Answer

A)  $162.50 
B)  $163.69 
C)  $168.35 
D)  $169.07 
A)  $162.50 
B)  $163.69 
C)  $168.35 
D)  $169.07

Question 10

A segment of a production or service process for which management wants a separate report is referred to as a(n) ______________________________.

Accepted Answer

The answer of A segment of a production or service...

Question 11

Activity-based costing is appropriate for a company that has high overhead costs that are not proportional to unit volumes of individual products.

Accepted Answer

A) True 
 B)False

Question 12

The costs of non-quality work do not include

Accepted Answer

A)  the cost of handling complaints. 
B)  the cost of scrap. 
C)  warranty costs. 
D)  original design costs. 
A)  the cost of handling complaints. 
B)  the cost of scrap. 
C)  warranty costs. 
D)  original design costs.

Question 13

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 14

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 15

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 16

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

Question 17

Which of the following falls under the Activity-Based Management umbrella?

Accepted Answer

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

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 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 19

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

Accepted Answer

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

Question 20

Machine setup is normally considered a unit-level cost

Accepted Answer

A) True 
 B)False

Costs that support an overall production or service process are referred to as ______________________________. or

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

When a firm redesigns a product to reduce the number of component parts, the firm is

The first step in performing activity analysis is to prepare a process map.

Business value-added activities add value to a product.

Which of the following have an impact on long-term variable costs?

A segment of a production or service process for which management wants a separate report is referred to as a(n) ______________________________.

Activity-based costing is appropriate for a company that has high overhead costs that are not proportional to unit volumes of individual products.

The costs of non-quality work do not include

Manufacturing cycle efficiency is a measure of

Lead time minus production time is equal to

Which of the following add customer value?

Which of the following falls under the Activity-Based Management umbrella?

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

Machine setup is normally considered a unit-level cost

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

Costs that support an overall production or service process are referred to as ______________________________. or

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

When a firm redesigns a product to reduce the number of component parts, the firm is

The first step in performing activity analysis is to prepare a process map.

Business value-added activities add value to a product.

Which of the following have an impact on long-term variable costs?

A segment of a production or service process for which management wants a separate report is referred to as a(n) ______________________________.

Activity-based costing is appropriate for a company that has high overhead costs that are not proportional to unit volumes of individual products.

The costs of non-quality work do not include

Manufacturing cycle efficiency is a measure of

Lead time minus production time is equal to

Which of the following add customer value?

Which of the following falls under the Activity-Based Management umbrella?

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

Machine setup is normally considered a unit-level cost

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