Question 1

A lean company typically strives to lengthen the manufacturing cycle time.

Accepted Answer

A) True 
 B)False

Question 2

Machine set-up would be considered a batch-level cost.

Accepted Answer

A) True 
 B)False

Question 3

Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts division.   The following units were produced in December with the following information:
  Total unit cost for Part 002 is closest to (rounded):

Accepted Answer

A) $5.36 
B) $5.70. 
C) $9.37. 
D) $3.64. 
A) $5.36 
B) $5.70. 
C) $9.37. 
D) $3.64.

Question 4

Watson's Computer Company uses ABC to account for its manufacturing process.   Watson's Computer Company expects to produce 2,250 computers. Watson's Computer Company also expects to use 13,000 parts and have 20 setups.
The allocation rate for packaging is

Accepted Answer

A) $4.00. 
B) $13.33. 
C) $6.80. 
D) $7.01. 
A) $4.00. 
B) $13.33. 
C) $6.80. 
D) $7.01.

Question 5

Traditional cost systems with a single-allocation base tend to overcost high-volume products and undercost low-volume products as compared to activity-based costing systems.

Accepted Answer

A) True 
 B)False

Question 6

Appraisal costs are incurred to detect poor-quality goods or services.

Accepted Answer

A) True 
 B)False

A lean company typically strives to lengthen the manufacturing cycle time.

Machine set-up would be considered a batch-level cost.

Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts division. The following units were produced in December with the following information: Total unit cost for Part 002 is closest to (rounded):

Watson's Computer Company uses ABC to account for its manufacturing process. Watson's Computer Company expects to produce 2,250 computers. Watson's Computer Company also expects to use 13,000 parts and have 20 setups. The allocation rate for packaging is

Traditional cost systems with a single-allocation base tend to overcost high-volume products and undercost low-volume products as compared to activity-based costing systems.

Appraisal costs are incurred to detect poor-quality goods or services.

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters

Exam 4: Activity-Based Costing, Lean Operations, and the Costs of Quality

A lean company typically strives to lengthen the manufacturing cycle time.

Machine set-up would be considered a batch-level cost.

Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts division. The following units were produced in December with the following information: Total unit cost for Part 002 is closest to (rounded):

Watson's Computer Company uses ABC to account for its manufacturing process. Watson's Computer Company expects to produce 2,250 computers. Watson's Computer Company also expects to use 13,000 parts and have 20 setups. The allocation rate for packaging is

Traditional cost systems with a single-allocation base tend to overcost high-volume products and undercost low-volume products as compared to activity-based costing systems.

Appraisal costs are incurred to detect poor-quality goods or services.

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters