Question 1

Which is not a component of process value analysis?

Accepted Answer

A)  driver analysis 
B)  velocity 
C)  activity analysis 
D)  performance measurement 
E)  None of these. 
A)  driver analysis 
B)  velocity 
C)  activity analysis 
D)  performance measurement 
E)  None of these. B

Question 2

Match each item with the correct statement below.
-Cost assignment method used for a cost of a resource that is exclusively used by an activity.

Accepted Answer

A) cycle time 
B) direct tracing 
C) activity sharing 
D) driver tracing 
E) value-added activities
F)activity selection 
A) cycle time 
B) direct tracing 
C) activity sharing 
D) driver tracing 
E) value-added activities
F)activity selection B

Question 3

Activities necessary to remain in business are known as _____________________.

Accepted Answer

Value-added activities.

Question 4

Inspection time for a plant is 12,000 hours per year.The cost of inspection consists of salaries of four inspectors, totaling $65,000.Inspection also uses supplies costing $4 per inspection hour.The company has a close to zero-defect state and has eliminated the need for any inspection activity.Calculate the nonvalue-added cost of inspection per year.

Accepted Answer

A)  $30,000 
B)  $60,000 
C)  $113,000 
D)  $120,000 
A)  $30,000 
B)  $60,000 
C)  $113,000 
D)  $120,000

Question 5

Which of the following is not a possible source of customer diversity?

Accepted Answer

A)  sales support 
B)  order frequency 
C)  delivery frequency 
D)  geographic distance 
E)  Pricing 
A)  sales support 
B)  order frequency 
C)  delivery frequency 
D)  geographic distance 
E)  Pricing

Question 6

Velocity is the length of time that it takes to produce a unit of output from the time raw materials are received until the good is delivered.

Accepted Answer

A) True 
 B)False

Question 7

Match each item with the correct statement below.
-Costs necessary to perform value-added activities with perfect efficiency.

Accepted Answer

A) activity analysis 
B) value-added costs 
C) velocity 
D) activity inputs 
E) activity output measure
F)activity output 
A) activity analysis 
B) value-added costs 
C) velocity 
D) activity inputs 
E) activity output measure
F)activity output

Question 8

Accurate ___________________ allow managers to make better pricing decisions, customer-mix decisions, and other customer-related decisions that improve profitability.

Accepted Answer

The answer of Accurate ___________________ allow managers to make better...

Question 9

A(n) ____ ratio measures the proportion of an activity consumed by a product.

Accepted Answer

A)  production 
B)  consumption 
C)  efficiency 
D)  quality 
E)  usage 
A)  production 
B)  consumption 
C)  efficiency 
D)  quality 
E)  usage

Question 10

Resource drivers are factors that measure the consumption of resources by product.

Accepted Answer

A) True 
 B)False

Question 11

A company will sometimes use a ____________________ which identifies the amount of labor consumed by each activity.

Accepted Answer

work distr

Question 12

Which of the following is not an example of a nonvalue-added activity?

Accepted Answer

A)  Storing 
B)  Reporting defects 
C)  Handling customer complaints 
D)  Waiting 
E)  Supervising production workers 
A)  Storing 
B)  Reporting defects 
C)  Handling customer complaints 
D)  Waiting 
E)  Supervising production workers

Question 13

A factory produces 130,000 televisions per quarter.A total of 9,000 production hours are used by the factory per quarter.
-Calculate the cycle time in minutes.(Note: Round answer to two decimal places.)

Accepted Answer

A)  3.92 minutes 
B)  4.15 minutes 
C)  3.75 minutes 
D)  3.83 minutes 
A)  3.92 minutes 
B)  4.15 minutes 
C)  3.75 minutes 
D)  3.83 minutes

Question 14

Interviews and surveys are used to identify

Accepted Answer

A)  cycle time. 
B)  velocity. 
C)  control costs. 
D)  costs. 
E)  activities. 
A)  cycle time. 
B)  velocity. 
C)  control costs. 
D)  costs. 
E)  activities.

Question 15

One way to improve efficiency is to produce higher activity output with higher cost.

Accepted Answer

A) True 
 B)False

Question 16

A company has two inspectors, each earning a salary of $75,000.One inspector works exclusively on inspecting parts received from outside suppliers, while the other spends 30% of her time inspecting parts and 70% of her time inspecting final products.How much labor cost should be assigned to the activity, inspecting parts?

Accepted Answer

A)  $100,000 
B)  $95,000 
C)  $75,000 
D)  $96,275 
E)  $97,500 
A)  $100,000 
B)  $95,000 
C)  $75,000 
D)  $96,275 
E)  $97,500

Question 17

Alpha Technology produces two products: a high end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers.The two products use two overhead activities, with the following costs:  
The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production.

-Calculate Outstanding Computer's consumption ratio for setup hours.(Note: Round answer to two decimal places.)

Accepted Answer

A)  0.48 
B)  0.45 
C)  0.90 
D)  0.25 
E)  0.75 
A)  0.48 
B)  0.45 
C)  0.90 
D)  0.25 
E)  0.75

Question 18

Activity elimination focuses on nonvalue-added activities.

Accepted Answer

A) True 
 B)False

Question 19

The time required to produce one unit of a product is the

Accepted Answer

A)  efficiency. 
B)  velocity. 
C)  speed. 
D)  cycle time. 
A)  efficiency. 
B)  velocity. 
C)  speed. 
D)  cycle time.

Question 20

Activity inputs are the resources consumed by the activity in producing its output.

Accepted Answer

A) True 
 B)False

Which is not a component of process value analysis?

Match each item with the correct statement below. -Cost assignment method used for a cost of a resource that is exclusively used by an activity.

Activities necessary to remain in business are known as _____________________.

Which of the following is not a possible source of customer diversity?

Velocity is the length of time that it takes to produce a unit of output from the time raw materials are received until the good is delivered.

Match each item with the correct statement below. -Costs necessary to perform value-added activities with perfect efficiency.

Accurate ___________________ allow managers to make better pricing decisions, customer-mix decisions, and other customer-related decisions that improve profitability.

A(n) ____ ratio measures the proportion of an activity consumed by a product.

Resource drivers are factors that measure the consumption of resources by product.

A company will sometimes use a ____________________ which identifies the amount of labor consumed by each activity.

Which of the following is not an example of a nonvalue-added activity?

A factory produces 130,000 televisions per quarter.A total of 9,000 production hours are used by the factory per quarter. -Calculate the cycle time in minutes.(Note: Round answer to two decimal places.)

Interviews and surveys are used to identify

One way to improve efficiency is to produce higher activity output with higher cost.

Activity elimination focuses on nonvalue-added activities.

The time required to produce one unit of a product is the

Activity inputs are the resources consumed by the activity in producing its output.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Job-Order Costing and Normal Cost Overhead Application

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 5: Activity-Based Costing and Management

Which is not a component of process value analysis?

Match each item with the correct statement below. -Cost assignment method used for a cost of a resource that is exclusively used by an activity.

Activities necessary to remain in business are known as _____________________.

Which of the following is not a possible source of customer diversity?

Velocity is the length of time that it takes to produce a unit of output from the time raw materials are received until the good is delivered.

Match each item with the correct statement below. -Costs necessary to perform value-added activities with perfect efficiency.

Accurate ___________________ allow managers to make better pricing decisions, customer-mix decisions, and other customer-related decisions that improve profitability.

A(n) ____ ratio measures the proportion of an activity consumed by a product.

Resource drivers are factors that measure the consumption of resources by product.

A company will sometimes use a ____________________ which identifies the amount of labor consumed by each activity.

Which of the following is not an example of a nonvalue-added activity?

A factory produces 130,000 televisions per quarter.A total of 9,000 production hours are used by the factory per quarter. -Calculate the cycle time in minutes.(Note: Round answer to two decimal places.)

Interviews and surveys are used to identify

One way to improve efficiency is to produce higher activity output with higher cost.

Activity elimination focuses on nonvalue-added activities.

The time required to produce one unit of a product is the

Activity inputs are the resources consumed by the activity in producing its output.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Job-Order Costing and Normal Cost Overhead Application

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters