Question 1

Place an "X" in the column that corresponds to the type of activity referred to in each scenario.

Accepted Answer

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

Question 2

Frederick Taylor was the first to understand the importance of a business's activities.He examined workers' jobs as a set of tasks,each of which had a standard completion time in the

Accepted Answer

A) early 1800s. 
B) late 1800s. 
C) early 1900s. 
D) late 1900s. 
A) early 1800s. 
B) late 1800s. 
C) early 1900s. 
D) late 1900s.

Question 3

Estimated costs for activity cost pools and other items are as follows: Machining $800,000
Assembling 200,000
Advertising 450,000
Inspecting and testing 175,000
Total estimated overhead is

Accepted Answer

A) $1,000,000. 
B) $1,175,000. 
C) $1,450,000. 
D) $1,625,000. 
A) $1,000,000. 
B) $1,175,000. 
C) $1,450,000. 
D) $1,625,000.

Question 4

A&W Manufacturing uses an activity-based costing system for its cutting department.The activity cost totals $148,000.The number of cuts is the cost driver.The cutting department processed a total of 9,000 batches with an average cuts per batch of 6 and total cuts of 46,250.What is the activity rate for the cutting department?

Accepted Answer

A) $1,500 per cut 
B) $247 per cut 
C) $16.45 per batch 
D) $3.20 per cut 
A) $1,500 per cut 
B) $247 per cut 
C) $16.45 per batch 
D) $3.20 per cut

Question 5

The second step in the preparation of activity-based costing data is to

Accepted Answer

A) calculate activity cost pool rates. 
B) develop activity cost pools. 
C) allocate costs to products. 
D) calculate the 
A) calculate activity cost pool rates. 
B) develop activity cost pools. 
C) allocate costs to products. 
D) calculate the

Question 6

Calculating the activity rate is similar to the calculation of the

Accepted Answer

A) activity pools. 
B) predetermined overhead rate. 
C) overhead leverage rate. 
D) contribution margin rate. 
A) activity pools. 
B) predetermined overhead rate. 
C) overhead leverage rate. 
D) contribution margin rate.

Question 7

A costing technique that assigns costs to cost objects such as products or customers,based on the activities those cost objects require is referred to as

Accepted Answer

A) activity-job costing. 
B) activity-based costing. 
C) activity-pool costing. 
D) activity-trace costing. 
A) activity-job costing. 
B) activity-based costing. 
C) activity-pool costing. 
D) activity-trace costing.

Question 8

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

Accepted Answer

A) Machine setup 
B) Cutting 
C) Sewing 
D) Lettering 
A) Machine setup 
B) Cutting 
C) Sewing 
D) Lettering

Question 9

Although the total amount of allocated overhead differs between a traditional overhead allocation method and activity-based overhead allocations,we can still compare the percentage of overhead allocated to each product.

Accepted Answer

A) True 
 B)False

Question 10

The last step in the preparation of activity-based costing data is to

Accepted Answer

A) determine the cost pool resources. 
B) determine the activity driver. 
C) allocate cost to products. 
D) calculate the 
A) determine the cost pool resources. 
B) determine the activity driver. 
C) allocate cost to products. 
D) calculate the

Question 11

An activity that is performed for each individual

Accepted Answer

A) variable cost-level activity. 
B) unit-level activity. 
C) batch-level activity. 
D) operations-level activity. 
A) variable cost-level activity. 
B) unit-level activity. 
C) batch-level activity. 
D) operations-level activity.

Question 12

Activity-based costing is a costing technique that assigns costs to cost objects such as products or customers,based on the activities those cost objects require.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a reason that employees must estimate how much time employees spend performing each activity?

Accepted Answer

A) So that the budget committee will know how to allocate direct material 
B) So that the resources consumed by the activities can be calculated 
C) So that the level of detail will not become too burdensome 
D) So that the budget committee will know how to allocate direct material and the level of detail will not become too burdensome 
A) So that the budget committee will know how to allocate direct material 
B) So that the resources consumed by the activities can be calculated 
C) So that the level of detail will not become too burdensome 
D) So that the budget committee will know how to allocate direct material and the level of detail will not become too burdensome

Question 14

Which of the following would be considered a batch-level activity?

Accepted Answer

A) Machine set-up 
B) Preparing the annual budget 
C) Direct labor 
D) Warehouse costs 
A) Machine set-up 
B) Preparing the annual budget 
C) Direct labor 
D) Warehouse costs

Question 15

Which of the following would be considered a

Accepted Answer

A) Ordering direct materials 
B) Direct labor 
C) Preparing the annual budget 
D) Performing quality tests 
A) Ordering direct materials 
B) Direct labor 
C) Preparing the annual budget 
D) Performing quality tests

Question 16

Which of the following activities would be classified as non-value added in the manufacture of wooden bird houses?

Accepted Answer

A) Moving materials 
B) Nailing 
C) Painting 
D) Sanding 
A) Moving materials 
B) Nailing 
C) Painting 
D) Sanding

Question 17

Calculating the direct materials and direct labor cost that have been incurred to produce a product or deliver a service is a relatively complex process.

Accepted Answer

A) True 
 B)False

Question 18

Place and "X" in the column that corresponds to the type of activity referred to in each scenario.

Accepted Answer

The answer of Place and "X" in the column that...

Question 19

An activity-based analysis that focused only on manufacturing overhead would

Accepted Answer

A) not improve GAAP-based financial statements. 
B) improve GAAP-based financial statements. 
C) improve statement sent to the SEC by publicly-traded companies. 
D) both improve GAAP-based financial statements and statement sent to the SEC by publicly-traded companies. 
A) not improve GAAP-based financial statements. 
B) improve GAAP-based financial statements. 
C) improve statement sent to the SEC by publicly-traded companies. 
D) both improve GAAP-based financial statements and statement sent to the SEC by publicly-traded companies.

Question 20

Customer-level activities are also referred to as customer-sustaining activities.

Accepted Answer

A) True 
 B)False

Place an "X" in the column that corresponds to the type of activity referred to in each scenario.

Frederick Taylor was the first to understand the importance of a business's activities.He examined workers' jobs as a set of tasks,each of which had a standard completion time in the

Estimated costs for activity cost pools and other items are as follows: Machining $800,000 Assembling 200,000 Advertising 450,000 Inspecting and testing 175,000 Total estimated overhead is

The second step in the preparation of activity-based costing data is to

Calculating the activity rate is similar to the calculation of the

A costing technique that assigns costs to cost objects such as products or customers,based on the activities those cost objects require is referred to as

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

Although the total amount of allocated overhead differs between a traditional overhead allocation method and activity-based overhead allocations,we can still compare the percentage of overhead allocated to each product.

The last step in the preparation of activity-based costing data is to

An activity that is performed for each individual

Activity-based costing is a costing technique that assigns costs to cost objects such as products or customers,based on the activities those cost objects require.

Which of the following is a reason that employees must estimate how much time employees spend performing each activity?

Which of the following would be considered a batch-level activity?

Which of the following would be considered a

Which of the following activities would be classified as non-value added in the manufacture of wooden bird houses?

Calculating the direct materials and direct labor cost that have been incurred to produce a product or deliver a service is a relatively complex process.

Place and "X" in the column that corresponds to the type of activity referred to in each scenario.

An activity-based analysis that focused only on manufacturing overhead would

Customer-level activities are also referred to as customer-sustaining activities.

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

Exam 7: Activity-Based Costing and Activity Based Management

Place an "X" in the column that corresponds to the type of activity referred to in each scenario.

Frederick Taylor was the first to understand the importance of a business's activities.He examined workers' jobs as a set of tasks,each of which had a standard completion time in the

Estimated costs for activity cost pools and other items are as follows: Machining $800,000 Assembling 200,000 Advertising 450,000 Inspecting and testing 175,000 Total estimated overhead is

The second step in the preparation of activity-based costing data is to

Calculating the activity rate is similar to the calculation of the

A costing technique that assigns costs to cost objects such as products or customers,based on the activities those cost objects require is referred to as

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

Although the total amount of allocated overhead differs between a traditional overhead allocation method and activity-based overhead allocations,we can still compare the percentage of overhead allocated to each product.

The last step in the preparation of activity-based costing data is to

An activity that is performed for each individual

Activity-based costing is a costing technique that assigns costs to cost objects such as products or customers,based on the activities those cost objects require.

Which of the following is a reason that employees must estimate how much time employees spend performing each activity?

Which of the following would be considered a batch-level activity?

Which of the following would be considered a

Which of the following activities would be classified as non-value added in the manufacture of wooden bird houses?

Calculating the direct materials and direct labor cost that have been incurred to produce a product or deliver a service is a relatively complex process.

Place and "X" in the column that corresponds to the type of activity referred to in each scenario.

An activity-based analysis that focused only on manufacturing overhead would

Customer-level activities are also referred to as customer-sustaining activities.

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