Question 1

Which of the following is NOT an advantage of a time-driven ABC system?

Accepted Answer

A) There are more activity pools used to allocate costs. 
B) Managers can review the costs of unused capacity. 
C) Managers can determine how to reduce the cost of supplying unused resources in subsequent periods. 
D) Managers can monitor efforts to reduce costs with unused capacity. 
A) There are more activity pools used to allocate costs. 
B) Managers can review the costs of unused capacity. 
C) Managers can determine how to reduce the cost of supplying unused resources in subsequent periods. 
D) Managers can monitor efforts to reduce costs with unused capacity.

Question 2

Cabrini Company produces two products: toy trucks and toy cars. The company uses departmental overhead rates for the two production departments: Moulding and Finishing. Moulding uses machine hours to assign overhead and Finishing uses direct labour hours; 50,000 trucks and 250,000 cars are produced. Please find the following data:
$\begin{array}{|l|c|c|c|}
\hline & \text { Moulding } & \text { Finishing } & \text { Total } \
\hline \text { Estimated overhead } & \$ 250,000 & \$ 100,000 & \$ 350,000 \
\hline \text { Actual overhead } & \$ 240,000 & \$ 120,000 & \$ 360,000 \
\hline & & & \\hline \text { Expected direct labour hours } & & & \
\hline \text { Trucks } & 5,000 & 5,000 & 10,000 \
\hline \text { Cars } & 5,000 & 35,000 & 40,000 \
\hline \text { Expected machine hours } & & & \\hline \text { Trucks } & 17,000 & 3,000 & 20,000 \
\hline \text { Cars } & 3,000 & 7,000 & 10,000 \
\hline \text { Actual direct labour hours } & & & \
\hline \text { Trucks } & 4,500 & 5,300 & 10,000 \
\hline \text { Cars } & 5,500 & 34,500 & 40,000 \\hline \text { Actual machine hours } & & & \
\hline \text { Trucks } & 16,500 & 3,500 & 20,000 \
\hline \text { Cars } & 3,200 & 6,800 & 10,000 \
\hline
\end{array}$
-Refer to the figure.What are the departmental overhead rates for the moulding and finishing department,respectively?

Accepted Answer

A) $8.33; $2 
B) $12.50; $2.50 
C) $25; $10 
D) $25; $2.50 
A) $8.33; $2 
B) $12.50; $2.50 
C) $25; $10 
D) $25; $2.50

Question 3

What costing system first traces costs to activities and then to products?

Accepted Answer

A) direct costing 
B) absorption costing 
C) functional-based costing 
D) activity-based costing 
A) direct costing 
B) absorption costing 
C) functional-based costing 
D) activity-based costing

Question 4

Yang Manufacturing Company manufactures two products (A and B). The overhead costs ($58,000) have been divided into three cost pools that use the following activity drivers:
$\begin{array}{ccrr}
&&\text { Number of Labour }\
 \underline{\text { Product }}&\underline{\text { Number of Orders }} & \underline{\text { Transactions }} & \underline{\text { Labour Hours }}\
\text { A } & 15 & 50 & 500 \
\text {B} & 10 & 150 & 2,000 \\
\text { Cost per pool } & \$ 10,000 & \$ 8,000 & \$ 40,000
\end{array}$

-Refer to the figure.What is the allocation rate per order using ABC?

Accepted Answer

A) $400 
B) $2,320 
C) $10,000 
D) $58,000 
A) $400 
B) $2,320 
C) $10,000 
D) $58,000

Which of the following is NOT an advantage of a time-driven ABC system?

What costing system first traces costs to activities and then to products?

A: Basic Cost Management Concepts

B: Basic Cost Management Concepts

Cost Behaviour

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

Filters

Exam 6: Activity-Based Costing

Which of the following is NOT an advantage of a time-driven ABC system?

What costing system first traces costs to activities and then to products?

A: Basic Cost Management Concepts

B: Basic Cost Management Concepts

Cost Behaviour

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

Filters