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

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 loan application cost will be assigned to the Broken Arrow branch?

(Multiple Choice)

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Question 161

Implementing activity based costing (ABC) has a direct impact on reducing overhead in an organization.

(True/False)

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Question 162

The following items are used in tracing costs in an ABC system. In which order are they used?

(Multiple Choice)

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Question 163

The sum of value-added processing time plus non-value added time equals __________________________. or or

(Short Answer)

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Question 164

A series of activities that when performed together satisfy a specific objective is referred to as a ____________________.

(Short Answer)

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Question 165

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 A will have an overhead cost per unit of

(Multiple Choice)

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Question 166

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

(Multiple Choice)

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Question 167

In allocating fixed costs to products in activity-based costing,

(Multiple Choice)

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Question 168

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

(Multiple Choice)

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Question 169

Activity-based costing is appropriate for a company that manufactures a single product.

(True/False)

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Question 170

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 171

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 overhead activity hours used, the total product cost per unit assigned to Product B will be

(Multiple Choice)

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Question 172

Traditionally, overhead has been assigned based on direct labor hours or machine hours. What effect does this have on the cost of a high-volume item?

(Multiple Choice)

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Question 173

Activity-based costing conforms to GAAP with regard to which costs should be expensed.

(True/False)

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Question 174

If only one or two overhead cost pools are used,

(Multiple Choice)

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Question 175

ABC should be used in which of the following situations?

(Multiple Choice)

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Question 176

Showing 161 - 176 of 176

Implementing activity based costing (ABC) has a direct impact on reducing overhead in an organization.

The following items are used in tracing costs in an ABC system. In which order are they used?

The sum of value-added processing time plus non-value added time equals __________________________. or or

A series of activities that when performed together satisfy a specific objective is referred to as a ____________________.

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

In allocating fixed costs to products in activity-based costing,

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

Activity-based costing is appropriate for a company that manufactures a single product.

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?

Traditionally, overhead has been assigned based on direct labor hours or machine hours. What effect does this have on the cost of a high-volume item?

Activity-based costing conforms to GAAP with regard to which costs should be expensed.

If only one or two overhead cost pools are used,

ABC should be used in which of the following situations?

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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