Question 1

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 2

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 A will have an overhead cost per unit of

Accepted Answer

A)  $ 88.64. 
B)  $123.64. 
C)  $135.00. 
D)  None of the responses are correct. 
A)  $ 88.64. 
B)  $123.64. 
C)  $135.00. 
D)  None of the responses are correct.

Question 3

When cost driver analysis is used, organizational profit or loss can be determined by subtracting

Accepted Answer

A)  organizational costs from total margin provided by products. 
B)  organizational costs from total product revenue. 
C)  total product costs from total product revenue. 
D)  total unit, batch, product/process, and organizational level costs incurred for a period from total product revenue. 
A)  organizational costs from total margin provided by products. 
B)  organizational costs from total product revenue. 
C)  total product costs from total product revenue. 
D)  total unit, batch, product/process, and organizational level costs incurred for a period from total product revenue.

Question 4

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

Accepted Answer

A)  $76.97 
B)  $87.75 
C)  $88.64 
D)  None of the responses are correct. 
A)  $76.97 
B)  $87.75 
C)  $88.64 
D)  None of the responses are correct.

Question 5

Setup time is

Accepted Answer

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

Question 6

An activity that is essential for business operations but does not add value to a product is referred to as a ___________________________________ activity.

Accepted Answer

business v

Question 7

What are three significant cost drivers that have been disregarded by traditional product costing system?

Accepted Answer

The significant cost drivers that have o

Question 8

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.

Question 9

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 new account activity?

Accepted Answer

A)  $0.09 
B)  $0.075 
C)  $30.00 
D)  $50.00 
A)  $0.09 
B)  $0.075 
C)  $30.00 
D)  $50.00

Question 10

Direct materials are normally considered batch-level costs.

Accepted Answer

A) True 
 B)False

Question 11

The "Rule of One" underlies the premise that all costs are

Accepted Answer

A)  variable. 
B)  fixed. 
C)  unit-based. 
D)  short-term. 
A)  variable. 
B)  fixed. 
C)  unit-based. 
D)  short-term.

Question 12

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 new account cost will be assigned to the Choctaw branch?

Accepted Answer

A)  $10,000 
B)  $20,000 
C)  $30,000 
D)  $50,000 
A)  $10,000 
B)  $20,000 
C)  $30,000 
D)  $50,000

Question 13

Adopting a just-in-time (JIT) manufacturing process may enable a company to increase manufacturing cycle efficiency (MCE).

Accepted Answer

A) True 
 B)False

Question 14

In activity-based costing, cost reduction efforts are directed at specific

Accepted Answer

A)  cost categories. 
B)  cost pools. 
C)  processes. 
D)  cost drivers. 
A)  cost categories. 
B)  cost pools. 
C)  processes. 
D)  cost drivers.

Question 15

When non-value added time is greater, manufacturing cycle efficiency is lower.

Accepted Answer

A) True 
 B)False

Question 16

Costs that support a product type or process are referred to as ________________________.

Accepted Answer

product/pr

Question 17

Which of the following would not be considered a value-added activity in the preparation of a tax return?

Accepted Answer

A)  printing a copy of the return for the client 
B)  printing a copy of the return for the IRS 
C)  installing tax software 
D)  checking for accuracy 
A)  printing a copy of the return for the client 
B)  printing a copy of the return for the IRS 
C)  installing tax software 
D)  checking for accuracy

Question 18

Relative to traditional product costing, activity-based costing differs in the way costs are

Accepted Answer

A)  processed. 
B)  allocated. 
C)  benchmarked. 
D)  incurred. 
A)  processed. 
B)  allocated. 
C)  benchmarked. 
D)  incurred.

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 an activity-based costing (ABC) system 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 20

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.

An activity center is an organizational unit

When cost driver analysis is used, organizational profit or loss can be determined by subtracting

Setup time is

An activity that is essential for business operations but does not add value to a product is referred to as a ___________________________________ activity.

What are three significant cost drivers that have been disregarded by traditional product costing system?

Traditionally, managers have focused cost reduction efforts on

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 new account activity?

Direct materials are normally considered batch-level costs.

The "Rule of One" underlies the premise that all costs are

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 new account cost will be assigned to the Choctaw branch?

Adopting a just-in-time (JIT) manufacturing process may enable a company to increase manufacturing cycle efficiency (MCE).

In activity-based costing, cost reduction efforts are directed at specific

When non-value added time is greater, manufacturing cycle efficiency is lower.

Costs that support a product type or process are referred to as ________________________.

Which of the following would not be considered a value-added activity in the preparation of a tax return?

Relative to traditional product costing, activity-based costing differs in the way costs are

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

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

An activity center is an organizational unit

When cost driver analysis is used, organizational profit or loss can be determined by subtracting

Setup time is

An activity that is essential for business operations but does not add value to a product is referred to as a ___________________________________ activity.

What are three significant cost drivers that have been disregarded by traditional product costing system?

Traditionally, managers have focused cost reduction efforts on

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 new account activity?

Direct materials are normally considered batch-level costs.

The "Rule of One" underlies the premise that all costs are

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 new account cost will be assigned to the Choctaw branch?

Adopting a just-in-time (JIT) manufacturing process may enable a company to increase manufacturing cycle efficiency (MCE).

In activity-based costing, cost reduction efforts are directed at specific

When non-value added time is greater, manufacturing cycle efficiency is lower.

Costs that support a product type or process are referred to as ________________________.

Which of the following would not be considered a value-added activity in the preparation of a tax return?

Relative to traditional product costing, activity-based costing differs in the way costs are

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

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