Question 1

Direct materials are normally considered unit-level costs.

Accepted Answer

A) True 
 B)False

Question 2

Traditional costing systems tend to misallocate overhead to high-volume standard products

Accepted Answer

A) True 
 B)False

Question 3

When non-value added time is greater,manufacturing cycle efficiency is higher.

Accepted Answer

A) True 
 B)False

Question 4

Ultimate Vision Corporation
Ultimate Vision Corporation has two product lines: LCD televisions and projection televisions.The company has budgeted the following production and overhead costs for the upcoming year:
                           LCD TV’s       Projection TV’s              Units Produced               1,500       2,250               Direct labor hours per Unit              20       30               Material Moves per Product Line              15       20               Budgeted Materials Handling Cost       $75,000                             Total Machine Hours             10,000        16,000               Machine Maintenance Costs      $180,000                     
Refer to Ultimate Vision Corporation.If the company uses an activity-based costing (ABC)system to allocate factory overhead,the machine maintenance cost allocated to projection TVs would be:

Accepted Answer

A) $ 72,000 
B) $108,000 
C) $110,769 
D) $124,615 
A) $ 72,000 
B) $108,000 
C) $110,769 
D) $124,615

Question 5

Costs that are associated with the production of a group of similar products at the same time are referred to as ______________________________.

Accepted Answer

The answer of Costs that are associated with the production...

Question 6

______________________________ refers to the number of different processes through which a product flows.

Accepted Answer

The answer of ______________________________ refers to the number of different...

Question 7

Ultimate Vision Corporation
Ultimate Vision Corporation has two product lines: LCD televisions and projection televisions.The company has budgeted the following production and overhead costs for the upcoming year:
                           LCD TV’s       Projection TV’s              Units Produced               1,500       2,250               Direct labor hours per Unit              20       30               Material Moves per Product Line              15       20               Budgeted Materials Handling Cost       $75,000                             Total Machine Hours             10,000        16,000               Machine Maintenance Costs      $180,000                     
Refer to Ultimate Vision Corporation.If the company uses an activity-based costing (ABC)system to allocate factory overhead,the materials handing cost allocated to LCD TVs would be:

Accepted Answer

A) $23,077 
B) $28,125 
C) $30,000 
D) $45,000 
A) $23,077 
B) $28,125 
C) $30,000 
D) $45,000

Question 8

What are three significant cost drivers that have been disregarded by traditional product costing system?

Accepted Answer

The significant cost drivers that have o

Question 9

Mass customization is closely associated with
Procluct               Prochuct              Process          Pareto
$\text {\underline{ variety} }$    $\text {\underline{ complexity} }$          $\text {\underline{ errors} }$    $\text {\underline{ principle} }$

Accepted Answer

A) yes no no yes 
B) yes yes yes no 
C) no yes no no 
D) yes no yes yes 
A) yes no no yes 
B) yes yes yes no 
C) no yes no no 
D) yes no yes yes

Question 10

Houston National Bank
Houston National Bank had the following activities,traceable costs,and
Physical flow of driver units:
            Activities        Traceable Costs       Physical flow of Driver Units               Open new accounts       $50,000       1,000 accounts               Process deposits      36,000       400,000 deposits               Process withdrawals       15,000       200,000 withdrawals               Process loan applications      27,000       900 applications      
The above activities are used by the Memorial branch and the University branch:
                   Memorial       University                New accounts       200       400               Deposits       40,000       20,000               Withdrawals       15,000       18,000               Loan applications       100       160      
Refer to Houston National Bank.What is the cost per driver unit for the deposit activity?

Accepted Answer

A) $0.09 
B) $0.075 
C) $30.00 
D) $50.00 
A) $0.09 
B) $0.075 
C) $30.00 
D) $50.00

Question 11

Traditionally,managers have focused cost reduction efforts on

Accepted Answer

A) activities. 
B) processes. 
C) departments. 
D) costs. 
A) activities. 
B) processes. 
C) departments. 
D) costs.

Question 12

The costs of non-quality work do not include

Accepted Answer

A) the cost of handling complaints. 
B) the cost of scrap. 
C) warranty costs. 
D) original design costs. 
A) the cost of handling complaints. 
B) the cost of scrap. 
C) warranty costs. 
D) original design costs.

Question 13

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

Accepted Answer

A) departments. 
B) processes. 
C) products. 
D) activities. 
A) departments. 
B) processes. 
C) products. 
D) activities.

Question 14

Reed Company
Reed Company produces 50,000 units of Product Q and 6,000 units of Product Z during a period.In that period,four set-ups were required for color changes.All units of Product Q are black,which is the color in the process at the beginning of the period.A set-up was made for 1,000 blue units of Product Z;a set-up was made for 4,500 red units of Product Z;a set-up was made for 500 green units of Product Z.A set-up was then made to return the process to its standard black coloration and the units of Product Q were run.Each set-up costs $500.
Refer to Reed Company.If set-up cost is assigned on a volume basis for the department,what is the approximate per-unit set-up cost for the red units of Product Z?

Accepted Answer

A) $.036. 
B) $.111. 
C) $.250. 
D) None of the responses are correct. 
A) $.036. 
B) $.111. 
C) $.250. 
D) None of the responses are correct.

Question 15

Setup time is
$\text {\underline{ A batch cost} }$ $\text {\underline{ A value-added cost} }$ $\text {\underline{ A production Cost} }$

Accepted Answer

A) no no yes 
B) yes yes no 
C) yes no yes 
D) no yes yes 
A) no no yes 
B) yes yes no 
C) yes no yes 
D) no yes yes

Question 16

Mass customization can be achieved through the use of

Accepted Answer

A) activity-based costing. 
B) just-in-time inventory. 
C) flexible manufacturing systems. 
D) all of the above. 
A) activity-based costing. 
B) just-in-time inventory. 
C) flexible manufacturing systems. 
D) all of the above.

Question 17

Activity-based costing is appropriate for a company that manufactures a wide variety of products

Accepted Answer

A) True 
 B)False

Question 18

ABC should be used in which of the following situations?

Accepted Answer

A) single-product firms with multiple steps 
B) multiple-product firms with only a single process 
C) multiple-product firms with multiple processing steps 
D) in all manufacturing firms 
A) single-product firms with multiple steps 
B) multiple-product firms with only a single process 
C) multiple-product firms with multiple processing steps 
D) in all manufacturing firms

Question 19

Use of activity-based costing and activity-based management requires

Accepted Answer

A) the creation of an environment for change in an organization. 
B) elimination of all non-value-added activities in an organization. 
C) that company processes be automated and the use of direct labor be minimal. 
D) each process be fully mapped and all activities be identified as value-added or non-value-addeD. 
A) the creation of an environment for change in an organization. 
B) elimination of all non-value-added activities in an organization. 
C) that company processes be automated and the use of direct labor be minimal. 
D) each process be fully mapped and all activities be identified as value-added or non-value-addeD.

Question 20

In the pharmaceutical or food industries,quality control inspections would most likely be viewed as

Accepted Answer

A) non-value-added activities. 
B) business-value-added activities. 
C) value-added-activities. 
D) process-efficiency activities. 
A) non-value-added activities. 
B) business-value-added activities. 
C) value-added-activities. 
D) process-efficiency activities.

Direct materials are normally considered unit-level costs.

Traditional costing systems tend to misallocate overhead to high-volume standard products

When non-value added time is greater,manufacturing cycle efficiency is higher.

Costs that are associated with the production of a group of similar products at the same time are referred to as ______________________________.

______________________________ refers to the number of different processes through which a product flows.

What are three significant cost drivers that have been disregarded by traditional product costing system?

Mass customization is closely associated with Procluct Prochuct Process Pareto $\text {\underline{ variety} }$ $\text {\underline{ complexity} }$ $\text {\underline{ errors} }$ $\text {\underline{ principle} }$

Traditionally,managers have focused cost reduction efforts on

The costs of non-quality work do not include

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

Setup time is $\text {\underline{ A batch cost} }$ $\text {\underline{ A value-added cost} }$ $\text {\underline{ A production Cost} }$

Mass customization can be achieved through the use of

Activity-based costing is appropriate for a company that manufactures a wide variety of products

ABC should be used in which of the following situations?

Use of activity-based costing and activity-based management requires

In the pharmaceutical or food industries,quality control inspections would most likely be viewed as

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

Filters

		LCD TV’s	Projection TV’s
Units Produced		1,500	2,250
Direct labor hours per Unit		20	30
Material Moves per Product Line		15	20
Budgeted Materials Handling Cost	$75,000
Total Machine Hours		10,000	16,000
Machine Maintenance Costs	$180,000

Activities	Traceable Costs	Physical flow of Driver Units
Open new accounts	$50,000	1,000 accounts
Process deposits	36,000	400,000 deposits
Process withdrawals	15,000	200,000 withdrawals
Process loan applications	27,000	900 applications

	Memorial	University
New accounts	200	400
Deposits	40,000	20,000
Withdrawals	15,000	18,000
Loan applications	100	160

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

Direct materials are normally considered unit-level costs.

Traditional costing systems tend to misallocate overhead to high-volume standard products

When non-value added time is greater,manufacturing cycle efficiency is higher.

Costs that are associated with the production of a group of similar products at the same time are referred to as ______________________________.

______________________________ refers to the number of different processes through which a product flows.

What are three significant cost drivers that have been disregarded by traditional product costing system?

Mass customization is closely associated with Procluct Prochuct Process Pareto variety‾ \text {\underline{ variety} } variety​ complexity‾ \text {\underline{ complexity} } complexity​ errors‾ \text {\underline{ errors} } errors​ principle‾ \text {\underline{ principle} } principle​

Traditionally,managers have focused cost reduction efforts on

The costs of non-quality work do not include

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

Setup time is A batch cost‾ \text {\underline{ A batch cost} } A batch cost​ A value-added cost‾ \text {\underline{ A value-added cost} } A value-added cost​ A production Cost‾ \text {\underline{ A production Cost} } A production Cost​

Mass customization can be achieved through the use of

Activity-based costing is appropriate for a company that manufactures a wide variety of products

ABC should be used in which of the following situations?

Use of activity-based costing and activity-based management requires

In the pharmaceutical or food industries,quality control inspections would most likely be viewed as

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

Filters

Mass customization is closely associated with Procluct Prochuct Process Pareto $\text {\underline{ variety} }$ $\text {\underline{ complexity} }$ $\text {\underline{ errors} }$ $\text {\underline{ principle} }$

Setup time is $\text {\underline{ A batch cost} }$ $\text {\underline{ A value-added cost} }$ $\text {\underline{ A production Cost} }$