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

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:

For a company that manufactures candy, how would the cost of sugar be classified?

Mass customization can be achieved through the use of

Global competition has forced American industry to

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

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

A(n) _________________________ measures the resources consumed by a manufacturing process.

A just-in-time manufacturing process should have substantially less of which of the following than a traditional manufacturing process?

Simultaneous engineering helps companies accomplish which of the following?

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

In activity-based costing, final cost allocations assign costs to

There is a positive relationship between value-added (VA) activities and manufacturing cycle efficiency (MCE).

Traditional standard costs are inappropriate measures for performance evaluation in the "new era" of manufacturing because they

A traditional costing system has fewer cost pools that does an activity-based costing (ABC) system.

Which of the following statements about business-value-added activities (BVAs) is true?

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

Discuss how activity-based costing and activity based management support continuous improvement in an organization.

Parrish Company Parrish Company uses activity-based costing. The company produces two products: IPods and MP3 players. The annual production and sales volume of IPods is 8,000 units and of MP3 players is 6,000 units. There are three activity cost pools with the following expected activities and estimated total costs: Refer to Parrish Company. Using ABC, the cost per unit of IPods is approximately:

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 digital camera is approximately:

Unit level costs occur once for each unit produced.