Question 1

A costing system that first assigns costs to activities and then to products is

Accepted Answer

A)  activity-based costing. 
B)  job-order costing. 
C)  activity-based management. 
D)  volume based costing. 
E)  nonunit-level costing. 
A)  activity-based costing. 
B)  job-order costing. 
C)  activity-based management. 
D)  volume based costing. 
E)  nonunit-level costing.

Question 2

____ costs in many firms represent a much higher percentage of product costs than direct labor.

Accepted Answer

A)  Nonvalue-added 
B)  Failure 
C)  Overhead 
D)  Appraisal 
E)  Control 
A)  Nonvalue-added 
B)  Failure 
C)  Overhead 
D)  Appraisal 
E)  Control

Question 3

A focus on cost reduction instead of cost assignment and emphasizing the maximization of systemwide performance is known as _______________________.

Accepted Answer

process-va

Question 4

To calculate an activity rate, the ____ of each activity must be determined.

Accepted Answer

A)  practical capacity 
B)  expenditure level 
C)  processing ratio 
D)  value 
A)  practical capacity 
B)  expenditure level 
C)  processing ratio 
D)  value

Question 5

Match each item with the correct statement below.
-The length of time it takes to produce a unit of output from the time raw materials are received until the good is delivered to finished goods inventory.

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 6

A list of activities accompanied by information that describes each activity is an activity ____.

Accepted Answer

A)  manifesto 
B)  diary 
C)  journal 
D)  dictionary 
E)  note 
A)  manifesto 
B)  diary 
C)  journal 
D)  dictionary 
E)  note

Question 7

____ is the length of time required to produce one product; ____ is the number of units that can be produced in a given period of time.

Accepted Answer

A)  Cycle time; velocity 
B)  Velocity; cycle time 
C)  Activity time; cycle production 
D)  Cycle time; activity output 
E)  Velocity; cycle production 
A)  Cycle time; velocity 
B)  Velocity; cycle time 
C)  Activity time; cycle production 
D)  Cycle time; activity output 
E)  Velocity; cycle production

Question 8

The consumption ratio is the amount of each activity consumed by a product.

Accepted Answer

A) True 
 B)False

Question 9

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:   
-  Using an activity rate for receiving based on receiving orders, assign receiving costs to the 35mm cameras.

Accepted Answer

A)  $1,802 
B)  $1,605 
C)  $2,001 
D)  $1,209 
E)  $4,007 
A)  $1,802 
B)  $1,605 
C)  $2,001 
D)  $1,209 
E)  $4,007

Question 10

The process of decreasing the time and resources required by an activity is known as

Accepted Answer

A)  activity reduction. 
B)  activity output measure. 
C)  activity attributes. 
D)  activity analysis. 
A)  activity reduction. 
B)  activity output measure. 
C)  activity attributes. 
D)  activity analysis.

Question 11

The activity driver for the shipping activity of Withstand Inc.is the number of orders shipped.Product A uses 30 orders, and Product B uses 70 orders.Calculate the consumption ratios for each product.(Note: Round answer to two decimal places.)

Accepted Answer

A)  0.25; 0.75 
B)  0.65; 0.35 
C)  0.30; 0.70 
D)  0.20; 0.80 
A)  0.25; 0.75 
B)  0.65; 0.35 
C)  0.30; 0.70 
D)  0.20; 0.80

Question 12

Unit-level activities are performed each time a unit is produced.

Accepted Answer

A) True 
 B)False

Question 13

____ is present whenever products have different consumption ratios for different overhead activities.

Accepted Answer

A)  Environmental costs 
B)  Activity sharing 
C)  Product diversity 
D)  Activity inputs 
E)  Control costs 
A)  Environmental costs 
B)  Activity sharing 
C)  Product diversity 
D)  Activity inputs 
E)  Control costs

Question 14

One of the questions answered by activity analysis should be "What activities are done?"

Accepted Answer

A) True 
 B)False

Question 15

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 total customer cost for the non-JIT distributors.(Note: Round the activity rates and activity costs to the nearest dollar.)

Accepted Answer

A)  $150,025 
B)  $122,500 
C)  $175,200 
D)  $147,030 
E)  $178,791 
A)  $150,025 
B)  $122,500 
C)  $175,200 
D)  $147,030 
E)  $178,791

Question 16

____ can help a company become more competitive by providing more accurate cost data.

Accepted Answer

A)  Unit-based costing 
B)  Volume-based costing 
C)  Kaizen costing 
D)  Production costing 
E)  Activity-based costing 
A)  Unit-based costing 
B)  Volume-based costing 
C)  Kaizen costing 
D)  Production costing 
E)  Activity-based costing

Question 17

_____________________ are factors that measure the consumption of activities by products and other cost objects and can be classified as either unit-level or nonunit-level.

Accepted Answer

The answer of _____________________ are factors that measure the consumption...

Question 18

Match each item with the correct statement below.
-Result or product of an activity.

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 19

Last year, Stevita Inc.shipped 3,000,000 kilograms of goods to customers at a cost of $2,400,000.If an individual customer orders 20,000 kilograms and produces $400,000 of revenue (total revenue is $40 million), the amount of shipping cost assigned to the customer using activity-based costing would be

Accepted Answer

A)  $16,000. 
B)  $8,000. 
C)  $24,000. 
D)  $4,000. 
E)  $60,000. 
A)  $16,000. 
B)  $8,000. 
C)  $24,000. 
D)  $4,000. 
E)  $60,000.

Question 20

Activities necessary to remain in business are called valuable activities.

Accepted Answer

A) True 
 B)False

A costing system that first assigns costs to activities and then to products is

____ costs in many firms represent a much higher percentage of product costs than direct labor.

A focus on cost reduction instead of cost assignment and emphasizing the maximization of systemwide performance is known as _______________________.

To calculate an activity rate, the ____ of each activity must be determined.

Match each item with the correct statement below. -The length of time it takes to produce a unit of output from the time raw materials are received until the good is delivered to finished goods inventory.

A list of activities accompanied by information that describes each activity is an activity ____.

is the length of time required to produce one product; is the number of units that can be produced in a given period of time.

The consumption ratio is the amount of each activity consumed by a product.

The process of decreasing the time and resources required by an activity is known as

The activity driver for the shipping activity of Withstand Inc.is the number of orders shipped.Product A uses 30 orders, and Product B uses 70 orders.Calculate the consumption ratios for each product.(Note: Round answer to two decimal places.)

Unit-level activities are performed each time a unit is produced.

____ is present whenever products have different consumption ratios for different overhead activities.

One of the questions answered by activity analysis should be "What activities are done?"

____ can help a company become more competitive by providing more accurate cost data.

_____________________ are factors that measure the consumption of activities by products and other cost objects and can be classified as either unit-level or nonunit-level.

Match each item with the correct statement below. -Result or product of an activity.

Activities necessary to remain in business are called valuable activities.

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

A costing system that first assigns costs to activities and then to products is

____ costs in many firms represent a much higher percentage of product costs than direct labor.

A focus on cost reduction instead of cost assignment and emphasizing the maximization of systemwide performance is known as _______________________.

To calculate an activity rate, the ____ of each activity must be determined.

Match each item with the correct statement below. -The length of time it takes to produce a unit of output from the time raw materials are received until the good is delivered to finished goods inventory.

A list of activities accompanied by information that describes each activity is an activity ____.

____ is the length of time required to produce one product; ____ is the number of units that can be produced in a given period of time.

The consumption ratio is the amount of each activity consumed by a product.

The process of decreasing the time and resources required by an activity is known as

The activity driver for the shipping activity of Withstand Inc.is the number of orders shipped.Product A uses 30 orders, and Product B uses 70 orders.Calculate the consumption ratios for each product.(Note: Round answer to two decimal places.)

Unit-level activities are performed each time a unit is produced.

____ is present whenever products have different consumption ratios for different overhead activities.

One of the questions answered by activity analysis should be "What activities are done?"

____ can help a company become more competitive by providing more accurate cost data.

_____________________ are factors that measure the consumption of activities by products and other cost objects and can be classified as either unit-level or nonunit-level.

Match each item with the correct statement below. -Result or product of an activity.

Activities necessary to remain in business are called valuable activities.

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

is the length of time required to produce one product; is the number of units that can be produced in a given period of time.