Question 1

Use of activity-based costing will result in the development of

Accepted Answer

A)  one overhead rate based on direct labor hours. 
B)  one plantwide activity-based overhead rate. 
C)  multiple activity-based overhead rates. 
D)  no overhead rates; overhead rates are not used in activity-based costing. 
A)  one overhead rate based on direct labor hours. 
B)  one plantwide activity-based overhead rate. 
C)  multiple activity-based overhead rates. 
D)  no overhead rates; overhead rates are not used in activity-based costing.

Question 2

Speedy Access Services Inc. leases access to high-speed computers to small businesses. It provides the following information for the year:   
Overhead is applied on the basis of computer hours.
Instructions 
a. Compute the predetermined overhead rate.
b. Determine the amount of overhead applied for the year.

Accepted Answer

The overhe

Question 3

The last step in activity-based costing is to

Accepted Answer

A)  assign overhead costs to products, using overhead rates determined for each cost pool. 
B)  compute the activity-based overhead rate per cost driver. 
C)  identify and classify the activities involved in the manufacture of specific products, and allocate overhead to cost pools. 
D)  identify the cost driver that has a strong correlation to the activity cost pool. 
A)  assign overhead costs to products, using overhead rates determined for each cost pool. 
B)  compute the activity-based overhead rate per cost driver. 
C)  identify and classify the activities involved in the manufacture of specific products, and allocate overhead to cost pools. 
D)  identify the cost driver that has a strong correlation to the activity cost pool.

Question 4

To achieve accurate costing, a high degree of correlation must exist between the cost driver and the actual consumption of the activity cost pool.

Accepted Answer

A) True 
 B)False

Question 5

Match between columns
                        Premises: Machine setup
Ordering and receiving
Packaging and shipping
Engineering design
Machining
Assembly

Accepted Answer

The Answer of Engineering hours. and Setups. and Machine hours. is...

Use of activity-based costing will result in the development of

The last step in activity-based costing is to

To achieve accurate costing, a high degree of correlation must exist between the cost driver and the actual consumption of the activity cost pool.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations Perpetual Approach

Inventories Periodic Approach

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, and Stockholders Equity

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Time Value of Money

Investments

Payroll Accounting

Subsidiary Ledgers and Special Journals

Other Significant Liabilities

Filters

Exam 17: Activity-Based Costing

Use of activity-based costing will result in the development of

The last step in activity-based costing is to

To achieve accurate costing, a high degree of correlation must exist between the cost driver and the actual consumption of the activity cost pool.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations Perpetual Approach

Inventories Periodic Approach

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, and Stockholders Equity

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Time Value of Money

Investments

Payroll Accounting

Subsidiary Ledgers and Special Journals

Other Significant Liabilities

Filters