Exam 19: Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

The just-in-time management system results in an increase in the costs to buy,store,insure,and move inventory.

In target pricing,the target sales price is the ________.

Activity-based costing uses a common allocation base for all activities.

Under the just-in-time costing system,underallocated and overallocated conversion costs are treated just like underallocated and overallocated manufacturing overhead.

Which of the following statements is true of an activity-based costing system?

The activity-based costing system improves the allocation of ________.

Which of the following statements is true of the just-in-time costing system?

Which of the following is most likely to be categorized as an external failure cost?

________ is a costing system that starts with output that has been completed and then assigns manufacturing costs to units sold and to inventories.

What is a quality management system? What is the common factor in all quality management systems?

The predetermined overhead allocation rate is an estimated overhead cost per unit of the allocation base and is calculated at the beginning of the accounting period.

The just-in-time costing system waits until the units are completed to record the cost of production.

The ________ system pulls materials,labor,and overhead costs into production under a just-in-time management system.

Archid,Inc. ,a manufacturer of spare parts,has two production departments-Assembling and Packaging.The Assembling department is mechanized,while the Packaging department is labor oriented.Estimated manufacturing overhead costs for the year were $19,300,000 for Assembling and $13,900,000 for Packaging.Calculate the department predetermined overhead allocation rates for the Assembling and Packaging departments,respectively,if the total estimated machine hours were 30,000 and labor hours were 20,000 for the year.(Round your answer to the nearest cent. )

Why is using a single plantwide predetermined overhead allocation rate not always accurate?

Under a just-in-time costing system,the journal entry that is recorded when the goods are completed and moved to Finished Goods Inventory is ________.

Quality management systems emphasize external failure costs.

A modification of the overhead allocation method which uses a single plantwide rate,is to use multiple predetermined overhead allocation rates that have different allocation bases.

Which of the following temporary accounts is typically used in just-in-time costing systems to accumulate direct labor and manufacturing overhead costs?

Powers,Inc.manufactures two kinds of bags-totes and satchels.The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base.Estimated overhead costs for the year are $25,750.Additional estimated information is given below. Totes Satchels Direct materials cost per unit \ 31 \ 45 Direct labor cost per unit \ 52 \ 65 Number of units 500 350 Calculate the amount of overhead to be allocated to Satchels,if the actual units produced and direct labor costs equal the estimated amounts.(Round any percentages to two decimal places and your final answer to the nearest dollar. )