Question 1

Refer to the Figure.What is the total activity cost per component associated with using Customer 1 as the supplier?

Accepted Answer

A)  $10.00 
B)  $15.75 
C)  $19.38 
D)  $20.00 
A)  $10.00 
B)  $15.75 
C)  $19.38 
D)  $20.00

Question 2

Match each item with the correct statement below.
-An activity that increases the time spent on or cost of a product or service without increasing its worth to the customer

Accepted Answer

A) Cycle time 
B) Non-value added 
C) Velocity 
D) Quality 
E) Value-added activities
F)Efficiency 
A) Cycle time 
B) Non-value added 
C) Velocity 
D) Quality 
E) Value-added activities
F)Efficiency

Question 3

What costs are incurred to avoid poor quality in the products or services being produced?

Accepted Answer

A)  prevention costs 
B)  appraisal costs 
C)  internal failure costs 
D)  external failure costs 
A)  prevention costs 
B)  appraisal costs 
C)  internal failure costs 
D)  external failure costs

Question 4

Quality improvement can increase profitability by decreasing costs.

Accepted Answer

A) True 
 B)False

Question 5

Refer to First Choice Credit Union. 
A.	Calculate the total number of chequing accounts.
B.	Calculate the yearly overall cost per chequing account.
C.	Calculate the monthly overall cost per chequing account.

Accepted Answer

The answer of Refer to First Choice Credit Union. 
A.	Calculate...

Question 6

The consumption ratio is the amount of each activity consumed by all products.

Accepted Answer

A) True 
 B)False

Question 7

$$\begin{array} { l r r } 
& \text { JIT } & \text { Non-JIT } \
\text { Sales Orders } & 300 & 20 \
\text { Sales Calls } & 25 & 25 \
\text { Service Calls } & 150 & 75 \
\text { Average Order Size } & 100 & 1,000 \
\text { Manufacturing Cost/Unit } & \$ 50 & \$ 50
\end{array}$$ $$\begin{array}{l}
\text { Customer Costs: }\
\begin{array} { l l } 
\text { Processing Sales Orders } & \$ 200,000 \
\text { Selling Goods } & \$ 120,000 \
\text { Servicing Goods } & \$ 150,000 \
\text { Total } & \$ 470,000
\end{array}
\end{array}$$
-Refer to the Figure.What is the total customer cost for the non-JIT distributor?

Accepted Answer

A)  $12,500 
B)  $50,025 
C)  $78,791 
D)  $122,525 
A)  $12,500 
B)  $50,025 
C)  $78,791 
D)  $122,525

Question 8

The activity driver for the shipping activity is the number of orders shipped.Product X uses 40 orders,and Product Y uses 120 orders.What is the consumption ratio for product X?

Accepted Answer

A)  0.215 
B)  0.250 
C)  0.300 
D)  0.625 
A)  0.215 
B)  0.250 
C)  0.300 
D)  0.625

Question 9

Which costing system first assigns costs to activities and then to products?

Accepted Answer

A)  activity-based costing 
B)  production costing 
C)  volume-based costing 
D)  unit-level costing 
A)  activity-based costing 
B)  production costing 
C)  volume-based costing 
D)  unit-level costing

Question 10

Refer to the Figure.What is the activity rate for inspecting components on the basis of sampling hours?

Accepted Answer

A)  $72.00 per hour 
B)  $76.00 per hour 
C)  $77.25 per hour 
D)  $78.00 per hour 
A)  $72.00 per hour 
B)  $76.00 per hour 
C)  $77.25 per hour 
D)  $78.00 per hour

Question 11

Receiving provides 4,000 receiving hours and costs $80,000 per year.What is the activity rate for receiving?

Accepted Answer

A)  $0.05 per receiving hour 
B)  $10.00 per receiving hour 
C)  $20.00 per receiving hour 
D)  $40.00 per receiving hour 
A)  $0.05 per receiving hour 
B)  $10.00 per receiving hour 
C)  $20.00 per receiving hour 
D)  $40.00 per receiving hour

Question 12

What type of activity is performed in response to poor quality?

Accepted Answer

A)  failure 
B)  quality 
C)  efficiency 
D)  control 
A)  failure 
B)  quality 
C)  efficiency 
D)  control

Question 13

Which of the following is a value-added activity?

Accepted Answer

A)  moving 
B)  inspection 
C)  processing 
D)  waiting 
A)  moving 
B)  inspection 
C)  processing 
D)  waiting

Question 14

What is the term for products having different consumption ratios for different overhead activities?

Accepted Answer

A)  volume costing 
B)  activity-based costing 
C)  product diversity 
D)  overhead diversity 
A)  volume costing 
B)  activity-based costing 
C)  product diversity 
D)  overhead diversity

Question 15

A product currently requires eight moves.By changing the plant layout,the number of moves can be reduced to zero.The cost per move is $150.What is the reduction in the non-value-added cost of the moving activity?

Accepted Answer

A)  $0 
B)  $150 
C)  $600 
D)  $1,200 
A)  $0 
B)  $150 
C)  $600 
D)  $1,200

Refer to the Figure.What is the total activity cost per component associated with using Customer 1 as the supplier?

Match each item with the correct statement below. -An activity that increases the time spent on or cost of a product or service without increasing its worth to the customer

What costs are incurred to avoid poor quality in the products or services being produced?

Quality improvement can increase profitability by decreasing costs.

Refer to First Choice Credit Union. A. Calculate the total number of chequing accounts. B. Calculate the yearly overall cost per chequing account. C. Calculate the monthly overall cost per chequing account.

The consumption ratio is the amount of each activity consumed by all products.

The activity driver for the shipping activity is the number of orders shipped.Product X uses 40 orders,and Product Y uses 120 orders.What is the consumption ratio for product X?

Which costing system first assigns costs to activities and then to products?

Refer to the Figure.What is the activity rate for inspecting components on the basis of sampling hours?

Receiving provides 4,000 receiving hours and costs $80,000 per year.What is the activity rate for receiving?

What type of activity is performed in response to poor quality?

Which of the following is a value-added activity?

What is the term for products having different consumption ratios for different overhead activities?

A product currently requires eight moves.By changing the plant layout,the number of moves can be reduced to zero.The cost per move is $150.What is the reduction in the non-value-added cost of the moving activity?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Absorption and Variable Costing,and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters

Exam 7: Activity-Based Costing and Management

Refer to the Figure.What is the total activity cost per component associated with using Customer 1 as the supplier?

Match each item with the correct statement below. -An activity that increases the time spent on or cost of a product or service without increasing its worth to the customer

What costs are incurred to avoid poor quality in the products or services being produced?

Quality improvement can increase profitability by decreasing costs.

Refer to First Choice Credit Union. A. Calculate the total number of chequing accounts. B. Calculate the yearly overall cost per chequing account. C. Calculate the monthly overall cost per chequing account.

The consumption ratio is the amount of each activity consumed by all products.

The activity driver for the shipping activity is the number of orders shipped.Product X uses 40 orders,and Product Y uses 120 orders.What is the consumption ratio for product X?

Which costing system first assigns costs to activities and then to products?

Refer to the Figure.What is the activity rate for inspecting components on the basis of sampling hours?

Receiving provides 4,000 receiving hours and costs $80,000 per year.What is the activity rate for receiving?

What type of activity is performed in response to poor quality?

Which of the following is a value-added activity?

What is the term for products having different consumption ratios for different overhead activities?

A product currently requires eight moves.By changing the plant layout,the number of moves can be reduced to zero.The cost per move is $150.What is the reduction in the non-value-added cost of the moving activity?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Absorption and Variable Costing,and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters