Question 1

Using activity-based costing, applied machinery overhead for the High F model per unit is (rounded to the nearest cent):

Accepted Answer

A) $6.13. 
B) $11.86. 
C) $16.28. 
D) $32.46. 
E) $66.73. 
A) $6.13. 
B) $11.86. 
C) $16.28. 
D) $32.46. 
E) $66.73.

Question 2

Under a costing system that allocates manufacturing overhead on the basis of direct labor hours, the material-handling cost per wall mirror is:

Accepted Answer

A) $0. 
B) $500. 
C) $1,000. 
D) $2,000. 
E) $5,000. 
A) $0. 
B) $500. 
C) $1,000. 
D) $2,000. 
E) $5,000.

Question 3

Elimination of low-value-added activities in a firm should:

Accepted Answer

A) Be discouraged because of potential harmful effects. 
B) Not affect customer value. 
C) Not have priority because low-value-added activities have little effect on a firm's performance. 
D) Have priority only when a firm is operating at a loss. 
E) Happen naturally if the firm is well-managed. 
A) Be discouraged because of potential harmful effects. 
B) Not affect customer value. 
C) Not have priority because low-value-added activities have little effect on a firm's performance. 
D) Have priority only when a firm is operating at a loss. 
E) Happen naturally if the firm is well-managed.

Question 4

Volume-based Versus ABC Overhead Rate: Medical Arts Hospital (MAH) uses a hospital-wide overhead rate based on nurse-hours. The intensive care unit (ICU), which has 30 beds, applies over­head using patient-days. Its budgeted cost and operating data for the year follow:     Required:
1. Calculate the ICU's overhead costs for the month of June using
a. The hospital-wide rate
b. The ICU department-wide rate
c. The cost driver rates for the ICU department
2. Explain the differences and determine which overhead assignment method is more appropriate

Accepted Answer

Answer may vary
Feedback: MAH's ICU over

Question 5

Using ABC, overhead cost assigned to Job #971 for machine repair is:

Accepted Answer

A) $2,300. 
B) $990. 
C) $6,500. 
D) $690. 
E) $1,020. 
A) $2,300. 
B) $990. 
C) $6,500. 
D) $690. 
E) $1,020.

Question 6

Activity-based costing (ABC) differs from other costing approaches in that it more accurately measures the cost of activities:

Accepted Answer

A) Not proportional to the volume of outputs produced. 
B) Directly proportional to the volume of outputs produced. 
C) Inversely proportional to the volume of outputs produced. 
D) That are non-value adding. 
E) At a significantly lower cost in time and money. 
A) Not proportional to the volume of outputs produced. 
B) Directly proportional to the volume of outputs produced. 
C) Inversely proportional to the volume of outputs produced. 
D) That are non-value adding. 
E) At a significantly lower cost in time and money.

Question 7

When gathering activity data, which of the following would not be a question that ABC project team members typically ask employees or managers?

Accepted Answer

A) Time spent performing the activity 
B) Resources required for the activity 
C) Where the activity takes place 
D) Value the activity has for the customer 
A) Time spent performing the activity 
B) Resources required for the activity 
C) Where the activity takes place 
D) Value the activity has for the customer

Question 8

Using activity-based costing, applied quality control factory overhead for the baseball cleat order is:

Accepted Answer

A) $28,450. 
B) $30,220. 
C) $24,375. 
D) $21,150. 
E) $19,600. 
A) $28,450. 
B) $30,220. 
C) $24,375. 
D) $21,150. 
E) $19,600.

Question 9

A measure of frequency and intensity of demands placed on activities by cost objects is:

Accepted Answer

A) Quantity driver. 
B) Resource consumption cost driver. 
C) Not a cost driver. 
D) Activity consumption cost driver. 
E) Consumption cost driver. 
A) Quantity driver. 
B) Resource consumption cost driver. 
C) Not a cost driver. 
D) Activity consumption cost driver. 
E) Consumption cost driver.

Question 10

Using the firm's volume- based costing, applied factory overhead per unit for the Great P model is (rounded to the nearest cent):

Accepted Answer

A) $61.32. 
B) $65.43. 
C) $43.42. 
D) $45.99. 
E) $54.04. 
A) $61.32. 
B) $65.43. 
C) $43.42. 
D) $45.99. 
E) $54.04.

Question 11

The major limitation of volume-based costing systems is the use of volume-based:

Accepted Answer

A) Criteria. 
B) Standards. 
C) Rates. 
D) Variances. 
E) Restrictions. 
A) Criteria. 
B) Standards. 
C) Rates. 
D) Variances. 
E) Restrictions.

Question 12

Using activity-based costing, applied machine repetition overhead for the 1,000 laser printers order is:

Accepted Answer

A) $7,800. 
B) $10,000. 
C) $10,500. 
D) $150. 
E) $21,600. 
A) $7,800. 
B) $10,000. 
C) $10,500. 
D) $150. 
E) $21,600.

Question 13

Which one of the following is a high value-added activity?

Accepted Answer

A) Set-up. 
B) Rework. 
C) Repair. 
D) Storage. 
E) Processing. 
A) Set-up. 
B) Rework. 
C) Repair. 
D) Storage. 
E) Processing.

Question 14

Which of the following activities is a facility-level activity?

Accepted Answer

A) Plant management salaries. 
B) Depreciation on a highly specialized piece of production equipment. 
C) Direct labor. 
D) Product design. 
E) Materials handling. 
A) Plant management salaries. 
B) Depreciation on a highly specialized piece of production equipment. 
C) Direct labor. 
D) Product design. 
E) Materials handling.

Question 15

Using activity-based costing, total overhead per unit of the High F model is (rounded to the nearest cent):

Accepted Answer

A) $42.61. 
B) $45.99. 
C) $61.32. 
D) $66.73. 
E) $168.00. 
A) $42.61. 
B) $45.99. 
C) $61.32. 
D) $66.73. 
E) $168.00.

Question 16

In the context of ABC, cross-subsidization refers to:

Accepted Answer

A) Production departments subsidizing each other. 
B) Costing inaccuracies which affect the relative profitability of products. 
C) Cross-selling products lines, which affect customer profitability. 
D) Efforts to increased coordination among department heads. 
E) None of the above. 
A) Production departments subsidizing each other. 
B) Costing inaccuracies which affect the relative profitability of products. 
C) Cross-selling products lines, which affect customer profitability. 
D) Efforts to increased coordination among department heads. 
E) None of the above.

Question 17

Freight charges based on number of units shipped to customers is a:

Accepted Answer

A) Customer unit-level cost. 
B) Customer batch-level cost. 
C) Customer-sustaining cost. 
D) Distribution-channel cost. 
E) Sales-level cost. 
A) Customer unit-level cost. 
B) Customer batch-level cost. 
C) Customer-sustaining cost. 
D) Distribution-channel cost. 
E) Sales-level cost.

Question 18

Which of the following is not considered a benefit of activity-based costing?

Accepted Answer

A) Decreased production activity levels. 
B) Improved product pricing decisions. 
C) A better understanding of manufacturing overhead. 
D) More accurate unit cost information. 
E) Improved strategic decisions. 
A) Decreased production activity levels. 
B) Improved product pricing decisions. 
C) A better understanding of manufacturing overhead. 
D) More accurate unit cost information. 
E) Improved strategic decisions.

Question 19

Using activity-based costing, applied quality control factory overhead for the High F model per unit is (rounded to the nearest cent):

Accepted Answer

A) $6.13. 
B) $11.86. 
C) $16.28. 
D) $32.46. 
E) $66.73. 
A) $6.13. 
B) $11.86. 
C) $16.28. 
D) $32.46. 
E) $66.73.

Question 20

Using activity-based costing, total overhead per unit of Great P model is (rounded to the nearest cent):

Accepted Answer

A) $42.61. 
B) $45.99. 
C) $61.32. 
D) $66.73. 
E) $168.00. 
A) $42.61. 
B) $45.99. 
C) $61.32. 
D) $66.73. 
E) $168.00.

Using activity-based costing, applied machinery overhead for the High F model per unit is (rounded to the nearest cent):

Under a costing system that allocates manufacturing overhead on the basis of direct labor hours, the material-handling cost per wall mirror is:

Elimination of low-value-added activities in a firm should:

Using ABC, overhead cost assigned to Job #971 for machine repair is:

Activity-based costing (ABC) differs from other costing approaches in that it more accurately measures the cost of activities:

When gathering activity data, which of the following would not be a question that ABC project team members typically ask employees or managers?

Using activity-based costing, applied quality control factory overhead for the baseball cleat order is:

A measure of frequency and intensity of demands placed on activities by cost objects is:

Using the firm's volume- based costing, applied factory overhead per unit for the Great P model is (rounded to the nearest cent):

The major limitation of volume-based costing systems is the use of volume-based:

Using activity-based costing, applied machine repetition overhead for the 1,000 laser printers order is:

Which one of the following is a high value-added activity?

Which of the following activities is a facility-level activity?

Using activity-based costing, total overhead per unit of the High F model is (rounded to the nearest cent):

In the context of ABC, cross-subsidization refers to:

Freight charges based on number of units shipped to customers is a:

Which of the following is not considered a benefit of activity-based costing?

Using activity-based costing, applied quality control factory overhead for the High F model per unit is (rounded to the nearest cent):

Using activity-based costing, total overhead per unit of Great P model is (rounded to the nearest cent):

Short-Term Profit Planning: Cost-Volume-Profit CVP Analysis

Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters

Exam 5: Activity-Based Costing and Customer Profitability Analysis

Using activity-based costing, applied machinery overhead for the High F model per unit is (rounded to the nearest cent):

Under a costing system that allocates manufacturing overhead on the basis of direct labor hours, the material-handling cost per wall mirror is:

Elimination of low-value-added activities in a firm should:

Using ABC, overhead cost assigned to Job #971 for machine repair is:

Activity-based costing (ABC) differs from other costing approaches in that it more accurately measures the cost of activities:

When gathering activity data, which of the following would not be a question that ABC project team members typically ask employees or managers?

Using activity-based costing, applied quality control factory overhead for the baseball cleat order is:

A measure of frequency and intensity of demands placed on activities by cost objects is:

Using the firm's volume- based costing, applied factory overhead per unit for the Great P model is (rounded to the nearest cent):

The major limitation of volume-based costing systems is the use of volume-based:

Using activity-based costing, applied machine repetition overhead for the 1,000 laser printers order is:

Which one of the following is a high value-added activity?

Which of the following activities is a facility-level activity?

Using activity-based costing, total overhead per unit of the High F model is (rounded to the nearest cent):

In the context of ABC, cross-subsidization refers to:

Freight charges based on number of units shipped to customers is a:

Which of the following is not considered a benefit of activity-based costing?

Using activity-based costing, applied quality control factory overhead for the High F model per unit is (rounded to the nearest cent):

Using activity-based costing, total overhead per unit of Great P model is (rounded to the nearest cent):

Short-Term Profit Planning: Cost-Volume-Profit CVP Analysis

Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters