Question 1

Match each item with the correct statement below.
-Factors that measure the consumption of activities by products and other cost objects.

Accepted Answer

A) activity drivers 
B) activity-based costing system 
C) consumption ratio 
D) unit-level activities 
E) activity attributes
F)resource drivers 
A) activity drivers 
B) activity-based costing system 
C) consumption ratio 
D) unit-level activities 
E) activity attributes
F)resource drivers

Question 2

When products consume overhead activities in systematically different proportion due to such things as product size, product complexity, setup time and size of batches this is known as _________________.

Accepted Answer

The answer of When products consume overhead activities in systematically...

Question 3

The receiving department of Owen has three activities: unloading, counting goods, and inspecting.Unloading requires a forklift that is leased for $15,000 per year.The forklift is used only for unloading.The fuel for the forklift is $2,000 per year.Inspection requires special testing equipment that has a depreciation of $500 per year and an operating cost of $1,000 per year.Receiving has four employees who each have an average salary of $35,000 per year.The work distribution matrix for the receiving personnel is as follows:  
-
Calculate the cost of unloading.

Accepted Answer

A)  $50,500 
B)  $56,000 
C)  $52,000 
D)  $54,000 
A)  $50,500 
B)  $56,000 
C)  $52,000 
D)  $54,000

Question 4

Activity drivers should be classified as either unit-level or nonunit-level.

Accepted Answer

A) True 
 B)False

Question 5

An activity dictionary lists the activities in an organization along with some critical activity attributes.

Accepted Answer

A) True 
 B)False

Question 6

When a new product can be designed to use components already being used by other products this is known as ________________.

Accepted Answer

The answer of When a new product can be designed...

Question 7

Activity attributes are financial and nonfinancial information items that describe individual activities.

Accepted Answer

A) True 
 B)False

Question 8

Zero defects means that most products conform to specifications.

Accepted Answer

A) True 
 B)False

Question 9

____ is concerned with identifying the root causes of activity costs.

Accepted Answer

A)  Direct analysis 
B)  Activity analysis 
C)  Driver analysis 
D)  Causal analysis 
E)  None of these. 
A)  Direct analysis 
B)  Activity analysis 
C)  Driver analysis 
D)  Causal analysis 
E)  None of these.

Question 10

Setups, material handling, and inspection are all possible examples of

Accepted Answer

A)  product diversity. 
B)  unit level overhead activities. 
C)  nonunit-level overhead activities. 
D)  sustainable development. 
E)  None of these. 
A)  product diversity. 
B)  unit level overhead activities. 
C)  nonunit-level overhead activities. 
D)  sustainable development. 
E)  None of these.

Question 11

____________________ are financial and nonfinancial information items that describe individual activities.

Accepted Answer

The answer of ____________________ are financial and nonfinancial information items...

Question 12

A work distribution matrix is derived from an interview or a written survey.

Accepted Answer

A) True 
 B)False

Question 13

The value-added standard is the waste-free component of the value-added activity.

Accepted Answer

A) True 
 B)False

Question 14

The moving activity of Alpha Inc.has an expected cost of $200,000.Expected direct labor hours are 50,000, and the expected number of moves is 90,000.What is the best activity rate for moving? (Note: Round answer to two decimal places.)

Accepted Answer

A)  $4.50 per move 
B)  $1.33 per move 
C)  $4.30 per move 
D)  $2.22 per move 
A)  $4.50 per move 
B)  $1.33 per move 
C)  $4.30 per move 
D)  $2.22 per move

Question 15

Factors that measure the consumption of activities by products and other cost objects are value-added costs.

Accepted Answer

A) True 
 B)False

Question 16

Workshape Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors.The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders.Both types of distributors purchase the same product.The customer activities and costs for the previous quarter are as follows: 
-  Calculate the activity rate for servicing goods.(Note: Round answer to two decimal places.)

Accepted Answer

A)  $1,089.25 per service call 
B)  $750.10 per service call 
C)  $680.50 per service call 
D)  $1,000.54 per service call 
E)  $672.41 per service call 
A)  $1,089.25 per service call 
B)  $750.10 per service call 
C)  $680.50 per service call 
D)  $1,000.54 per service call 
E)  $672.41 per service call

Question 17

Match each item with the correct statement below.
-Involves choosing among different sets of activities that are caused by competing strategies.

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

Question 18

Witness Manufacturing produces two types of cameras: 35mm and digital.The cameras are produced using one continuous process.Four activities have been identified: machining, setups, receiving, and packing.Resource drivers have been used to assign costs to each activity.The overhead activities, their costs, and the other related data are as follows:   
-
Calculate the total overhead assigned to the 35mm cameras, using only machine hours to calculate a plantwide rate.(Note: Round the plantwide rate to two decimal places.)

Accepted Answer

A)  $132,667 
B)  $72,333 
C)  $60,200 
D)  $75,130 
E)  $80,040 
A)  $132,667 
B)  $72,333 
C)  $60,200 
D)  $75,130 
E)  $80,040

Question 19

Match each item with the correct statement below.
-Financial and nonfinancial information items that describe individual activities.

Accepted Answer

A) activity drivers 
B) activity-based costing system 
C) consumption ratio 
D) unit-level activities 
E) activity attributes
F)resource drivers 
A) activity drivers 
B) activity-based costing system 
C) consumption ratio 
D) unit-level activities 
E) activity attributes
F)resource drivers

Question 20

A product currently requires 6 moves.By changing the plant layout, the number of moves can be reduced to 2.The cost per move is $40.Calculate the reduction in the nonvalue-added cost of the moving activity.

Accepted Answer

A)  $7 
B)  $30 
C)  $0 
D)  $160 
E)  $150 
A)  $7 
B)  $30 
C)  $0 
D)  $160 
E)  $150

Match each item with the correct statement below. -Factors that measure the consumption of activities by products and other cost objects.

When products consume overhead activities in systematically different proportion due to such things as product size, product complexity, setup time and size of batches this is known as _________________.

Activity drivers should be classified as either unit-level or nonunit-level.

An activity dictionary lists the activities in an organization along with some critical activity attributes.

When a new product can be designed to use components already being used by other products this is known as ________________.

Activity attributes are financial and nonfinancial information items that describe individual activities.

Zero defects means that most products conform to specifications.

____ is concerned with identifying the root causes of activity costs.

Setups, material handling, and inspection are all possible examples of

____________________ are financial and nonfinancial information items that describe individual activities.

A work distribution matrix is derived from an interview or a written survey.

The value-added standard is the waste-free component of the value-added activity.

The moving activity of Alpha Inc.has an expected cost of $200,000.Expected direct labor hours are 50,000, and the expected number of moves is 90,000.What is the best activity rate for moving? (Note: Round answer to two decimal places.)

Factors that measure the consumption of activities by products and other cost objects are value-added costs.

Match each item with the correct statement below. -Involves choosing among different sets of activities that are caused by competing strategies.

Match each item with the correct statement below. -Financial and nonfinancial information items that describe individual activities.

A product currently requires 6 moves.By changing the plant layout, the number of moves can be reduced to 2.The cost per move is $40.Calculate the reduction in the nonvalue-added cost of the moving activity.

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

Match each item with the correct statement below. -Factors that measure the consumption of activities by products and other cost objects.

When products consume overhead activities in systematically different proportion due to such things as product size, product complexity, setup time and size of batches this is known as _________________.

Activity drivers should be classified as either unit-level or nonunit-level.

An activity dictionary lists the activities in an organization along with some critical activity attributes.

When a new product can be designed to use components already being used by other products this is known as ________________.

Activity attributes are financial and nonfinancial information items that describe individual activities.

Zero defects means that most products conform to specifications.

____ is concerned with identifying the root causes of activity costs.

Setups, material handling, and inspection are all possible examples of

____________________ are financial and nonfinancial information items that describe individual activities.

A work distribution matrix is derived from an interview or a written survey.

The value-added standard is the waste-free component of the value-added activity.

The moving activity of Alpha Inc.has an expected cost of $200,000.Expected direct labor hours are 50,000, and the expected number of moves is 90,000.What is the best activity rate for moving? (Note: Round answer to two decimal places.)

Factors that measure the consumption of activities by products and other cost objects are value-added costs.

Match each item with the correct statement below. -Involves choosing among different sets of activities that are caused by competing strategies.

Match each item with the correct statement below. -Financial and nonfinancial information items that describe individual activities.

A product currently requires 6 moves.By changing the plant layout, the number of moves can be reduced to 2.The cost per move is $40.Calculate the reduction in the nonvalue-added cost of the moving activity.

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