Question 1

Place an "x" in the column that corresponds to the type of activity level referred to in a hospital setting.

Accepted Answer

The answer of Place an "x" in the column that...

Question 2

Costs of cleaning service
Required:
Identify at least one possible cost driver for each activity cost pool.

Accepted Answer

The answer of Costs of cleaning service
Required:
Identify at least one...

Question 3

The key to reducing costs through activity management is

Accepted Answer

A) reducing the number of activities. 
B) eliminating the resources associated with the reduced activities. 
C) reducing the work force. 
D) reducing the commissions of sales force. 
A) reducing the number of activities. 
B) eliminating the resources associated with the reduced activities. 
C) reducing the work force. 
D) reducing the commissions of sales force.

Question 4

The greatest use of activity-based costing information is for product costing and cost control.

Accepted Answer

A) True 
 B)False

Question 5

In order to increase a company's bottom line,it can

Accepted Answer

A) increase sales. 
B) decrease costs. 
C) either increase sales or decrease costs. 
D) neither increase sales or decrease costs. 
A) increase sales. 
B) decrease costs. 
C) either increase sales or decrease costs. 
D) neither increase sales or decrease costs.

Question 6

Which of the following would not be considered a customer-level activity?

Accepted Answer

A) Making a sales call 
B) Processing a sales order 
C) Delivery costs 
D) Preparing purchase orders 
A) Making a sales call 
B) Processing a sales order 
C) Delivery costs 
D) Preparing purchase orders

Question 7

Activities that are required to provide productive capacity and to keep the business in operation are

Accepted Answer

A) batch-level activities. 
B) product-level activities. 
C) customer-level activities. 
D) organization-level activities. 
A) batch-level activities. 
B) product-level activities. 
C) customer-level activities. 
D) organization-level activities.

Question 8

Which of the following might be a reason that allocating overhead under an activity-based approach might have less manufacturing overhead allocated to the products?

Accepted Answer

A) The general overhead cost pool is not allocated to products under activity-based costing. 
B) The product mix includes products that are not similar in material and labor. 
C) The product mix has all products that are similar in makeup of materials and labor. 
D) The general overhead cost pool is allocated to products under activity-based costing. 
A) The general overhead cost pool is not allocated to products under activity-based costing. 
B) The product mix includes products that are not similar in material and labor. 
C) The product mix has all products that are similar in makeup of materials and labor. 
D) The general overhead cost pool is allocated to products under activity-based costing.

Question 9

Activity-based management focuses on using the cost of performing the activities required to produce and sell products to identify activities that are non-value added.

Accepted Answer

A) True 
 B)False

Question 10

Bayline,Inc.manufactures two types of surf boards,Beginner and Longboard.Manufacturing overhead has been applied on the basis of direct labor hours.Bayline gathers some activity information and is interested in implementing an activity-based costing system.The company wants all overhead costs to be allocated to products.The overhead cost pools and activity drivers are as follows:
   Other product information is as follows:
   Required: 
a.Using the traditional method,determine the overhead rate per direct labor hour.
b.Using the activity-based costing approach,determine the two activity rates.
c.Using the activity-based costing approach,determine the unit product cost for the Beginner board.
Unit 7-2,

Accepted Answer

a.$98,000/14,000 = $7 per direct labor h

Question 11

Which of the following is the most time consuming part of implementing an activity-based costing system?

Accepted Answer

A) Identifying activities 
B) Developing activity cost pools 
C) Calculating activity cost pool rates 
D) Calculate the 
A) Identifying activities 
B) Developing activity cost pools 
C) Calculating activity cost pool rates 
D) Calculate the

Question 12

For unit-level activities, the total level of activity performed varies proportionately with the number of units produced.

Accepted Answer

A) True 
 B)False

Question 13

Assume that activity cost totals $180,000.The company produced an average of 40

Accepted Answer

A) $20 per batch 
B) $4,500 per batch 
C) 225 per batch 
D) .005 per batch 
A) $20 per batch 
B) $4,500 per batch 
C) 225 per batch 
D) .005 per batch

Question 14

You have been hired by a company that is transitioning from a traditional method of product costing to an activity-based costing method.You are assigned to a team that has the responsibility of classifying activities as value-added or non-value-added.One of the team members does not understand the purpose of classifying activities.Define valued-added and non-value added costs for your team member and give an example of each and explain how non-value added activities affect product cost

Accepted Answer

Non-valued added activities are those ac

Question 15

You are part of a team responsible for implementing an activity-based costing system.Some of the members do not understand the steps involved in implementing such a system.Prepare a summary showing your team members the steps involved and a brief description of each step that are completed in the process.

Accepted Answer

By completing the following five steps,o

Question 16

In the activity identification stage of implementing an activity-based costing system,defining activities in greater detail will

Accepted Answer

A) require more monitoring. 
B) lessen the change of misclassifying some costs and activities. 
C) both require more monitoring and lessen the change of misclassifying some costs and activities. 
D) neither require more monitoring nor lessen the change of misclassifying some costs and activities. 
A) require more monitoring. 
B) lessen the change of misclassifying some costs and activities. 
C) both require more monitoring and lessen the change of misclassifying some costs and activities. 
D) neither require more monitoring nor lessen the change of misclassifying some costs and activities.

Question 17

The greatest use of activity-based costing information for managers is for

Accepted Answer

A) product costing. 
B) pricing decisions. 
C) channel profitability decisions. 
D) process improvement. 
A) product costing. 
B) pricing decisions. 
C) channel profitability decisions. 
D) process improvement.

Question 18

Which of the following is not a step in implementing an activity-based costing system?

Accepted Answer

A) Developing activity cost pools 
B) Identifying activities 
C) Calculating predetermined overhead rates 
D) Calculate the 
A) Developing activity cost pools 
B) Identifying activities 
C) Calculating predetermined overhead rates 
D) Calculate the

Question 19

Which of the following activities would be classified as non-value-added in the manufacture of decorative pillows?

Accepted Answer

A) Cutting 
B) Sewing 
C) Storing 
D) Stuffing 
A) Cutting 
B) Sewing 
C) Storing 
D) Stuffing

Question 20

Assume that activity cost is $93,000,predetermined total overhead is $120,000,actual overhead is $98,000,and the company has three product lines,the activity rate is

Accepted Answer

A) $32,667 per product line. 
B) $31,000 per product line. 
C) $40,000 per product line. 
D) $50,000 per product line. 
A) $32,667 per product line. 
B) $31,000 per product line. 
C) $40,000 per product line. 
D) $50,000 per product line.

Place an "x" in the column that corresponds to the type of activity level referred to in a hospital setting.

Costs of cleaning service Required: Identify at least one possible cost driver for each activity cost pool.

The key to reducing costs through activity management is

The greatest use of activity-based costing information is for product costing and cost control.

In order to increase a company's bottom line,it can

Which of the following would not be considered a customer-level activity?

Activities that are required to provide productive capacity and to keep the business in operation are

Which of the following might be a reason that allocating overhead under an activity-based approach might have less manufacturing overhead allocated to the products?

Activity-based management focuses on using the cost of performing the activities required to produce and sell products to identify activities that are non-value added.

Which of the following is the most time consuming part of implementing an activity-based costing system?

For unit-level activities, the total level of activity performed varies proportionately with the number of units produced.

Assume that activity cost totals $180,000.The company produced an average of 40

In the activity identification stage of implementing an activity-based costing system,defining activities in greater detail will

The greatest use of activity-based costing information for managers is for

Which of the following is not a step in implementing an activity-based costing system?

Which of the following activities would be classified as non-value-added in the manufacture of decorative pillows?

Assume that activity cost is $93,000,predetermined total overhead is $120,000,actual overhead is $98,000,and the company has three product lines,the activity rate is

Accounting As a Tool for Management

Cost Behavior and Cost Estimation

Cost-Volume-Profit Analysis and Pricing Decisions

Product Costs and Job Order Costing

Planning and Forecasting

Performance Evaluation: Variance Analysis

Using Accounting Information to Make Managerial Decisions

Capital Budgeting

Decentralizing and Performance Evaluation

Performance Evaluation Revisited: a Balanced Approach

Financial Statement Analysis

Statement of Cash Flows

Topic Focus: Process Costing

Topic Focus Variable and Absorption Costing

Topic Focus Standard Costing Systems

Topic Focus Customer Profitability

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Exam 7: Activity-Based Costing and Activity Based Management

Place an "x" in the column that corresponds to the type of activity level referred to in a hospital setting.

Costs of cleaning service Required: Identify at least one possible cost driver for each activity cost pool.

The key to reducing costs through activity management is

The greatest use of activity-based costing information is for product costing and cost control.

In order to increase a company's bottom line,it can

Which of the following would not be considered a customer-level activity?

Activities that are required to provide productive capacity and to keep the business in operation are

Which of the following might be a reason that allocating overhead under an activity-based approach might have less manufacturing overhead allocated to the products?

Activity-based management focuses on using the cost of performing the activities required to produce and sell products to identify activities that are non-value added.

Which of the following is the most time consuming part of implementing an activity-based costing system?

For unit-level activities, the total level of activity performed varies proportionately with the number of units produced.

Assume that activity cost totals $180,000.The company produced an average of 40

In the activity identification stage of implementing an activity-based costing system,defining activities in greater detail will

The greatest use of activity-based costing information for managers is for

Which of the following is not a step in implementing an activity-based costing system?

Which of the following activities would be classified as non-value-added in the manufacture of decorative pillows?

Assume that activity cost is $93,000,predetermined total overhead is $120,000,actual overhead is $98,000,and the company has three product lines,the activity rate is

Accounting As a Tool for Management

Cost Behavior and Cost Estimation

Cost-Volume-Profit Analysis and Pricing Decisions

Product Costs and Job Order Costing

Planning and Forecasting

Performance Evaluation: Variance Analysis

Using Accounting Information to Make Managerial Decisions

Capital Budgeting

Decentralizing and Performance Evaluation

Performance Evaluation Revisited: a Balanced Approach

Financial Statement Analysis

Statement of Cash Flows

Topic Focus: Process Costing

Topic Focus Variable and Absorption Costing

Topic Focus Standard Costing Systems

Topic Focus Customer Profitability

Filters