Question 1

____ activities are unnecessary activities.

Accepted Answer

A)  Frivolous 
B)  Nonvalue-added 
C)  Expensive 
D)  Under-performing 
E)  None of these. 
A)  Frivolous 
B)  Nonvalue-added 
C)  Expensive 
D)  Under-performing 
E)  None of these.

Question 2

Ringing Solutions produces 12,000 units of a cell phone.The production requires prime costs of $400,000, uses 2,500 machine hours, and takes 1,800 setup hours.The activity rates are $50 per machine hour and $130 per setup hour.What is the unit cost of a cell phone? (Note: Round answer to two decimal places.)

Accepted Answer

A)  $60.15 
B)  $40.35 
C)  $63.25 
D)  $100.65 
E)  $30.55 
A)  $60.15 
B)  $40.35 
C)  $63.25 
D)  $100.65 
E)  $30.55

Question 3

____ is concerned with doing the activity right the first time it is performed.

Accepted Answer

A)  Time 
B)  Efficiency 
C)  Quality 
D)  Velocity 
E)  None of these. 
A)  Time 
B)  Efficiency 
C)  Quality 
D)  Velocity 
E)  None of these.

Question 4

A defective product is one that does conform to specifications.

Accepted Answer

A) True 
 B)False

Question 5

Assume that a company takes 10,000 hours to produce 50,000 units of a product.What is the velocity for the company?

Accepted Answer

A)  1 unit per hour 
B)  3.5 units per hour 
C)  2 units per hour 
D)  5 units per hour 
E)  2.5 units per hour 
A)  1 unit per hour 
B)  3.5 units per hour 
C)  2 units per hour 
D)  5 units per hour 
E)  2.5 units per hour

Question 6

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 the overhead cost per unit for Excellent Laptops using a plantwide rate based on direct labor costs.(Note: Round answer to two decimal places.)

Accepted Answer

A)  $9.63 per laptop 
B)  $22.45 per laptop 
C)  $4.25 per laptop 
D)  $7.22 per laptop 
E)  $7.50 per laptop 
A)  $9.63 per laptop 
B)  $22.45 per laptop 
C)  $4.25 per laptop 
D)  $7.22 per laptop 
E)  $7.50 per laptop

Question 7

Match each item with the correct statement below.
-Resources consumed by the activity in producing its output.

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

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 the overhead cost per unit for each of Outstanding Computer's computer using overhead rates based on machine hours and setup hours.(Note: Round answer to two decimal places.)

Accepted Answer

A)  $6.10 per unit 
B)  $3.99 per unit 
C)  $5.75 per unit 
D)  $4.88 per unit 
A)  $6.10 per unit 
B)  $3.99 per unit 
C)  $5.75 per unit 
D)  $4.88 per unit

Question 9

A factory produces 130,000 televisions per quarter.A total of 9,000 production hours are used by the factory per quarter.
- Compute the velocity in units per hour.(Note: Round answer to two decimal places.)

Accepted Answer

A)  16.50 units per hour 
B)  15.50 units per hour 
C)  14.44 units per hour 
D)  18.45 units per hour 
A)  16.50 units per hour 
B)  15.50 units per hour 
C)  14.44 units per hour 
D)  18.45 units per hour

Question 10

Assume that a company takes 4,500 hours to produce 15,000 units of a product.What is the cycle time for the company? (Note: Round answer to two decimal places.)

Accepted Answer

A)  0.45 hours per unit 
B)  1.50 hours per unit 
C)  0.50 hours per unit 
D)  3.50 hours per unit 
E)  0.30 hours per unit 
A)  0.45 hours per unit 
B)  1.50 hours per unit 
C)  0.50 hours per unit 
D)  3.50 hours per unit 
E)  0.30 hours per unit

Question 11

Using only unit-based activity drivers to assign nonunit-related overhead costs can cause

Accepted Answer

A)  product diversity. 
B)  distorted product costs. 
C)  efficiency. 
D)  activity sharing. 
E)  None of these. 
A)  product diversity. 
B)  distorted product costs. 
C)  efficiency. 
D)  activity sharing. 
E)  None of these.

Question 12

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 selling goods.(Note: Round answer to two decimal places.)

Accepted Answer

A)  $2,583.33 per sales call 
B)  $3,550.66 per sales call 
C)  $2,200.50 per sales call 
D)  $4,800.40 per sales call 
E)  $9,400.60 per sales call 
A)  $2,583.33 per sales call 
B)  $3,550.66 per sales call 
C)  $2,200.50 per sales call 
D)  $4,800.40 per sales call 
E)  $9,400.60 per sales call

Question 13

Which of the following is a value-added activity?

Accepted Answer

A)  Reordering parts 
B)  Rework 
C)  Processing sales orders 
D)  Handling customer complaints 
A)  Reordering parts 
B)  Rework 
C)  Processing sales orders 
D)  Handling customer complaints

Question 14

Match each item with the correct statement below.
-Activities necessary to remain in business

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 15

Activity analysis is the effort expended to identify those factors that are the root causes of activity costs.

Accepted Answer

A) True 
 B)False

Question 16

Match each item with the correct statement below.
-Process that answers the question "How many people perform the activities?"

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 17

_________________________ assigns costs to activities and then costs to cost objects.

Accepted Answer

Activity-b

Question 18

Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Accepted Answer

A) True 
 B)False

Question 19

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 counting.

Accepted Answer

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

Question 20

Receiving provides 12,000 receiving hours and costs $60,000 per year.What is the activity rate for receiving?

Accepted Answer

A)  $14 per receiving hour 
B)  $5 per receiving hour 
C)  $4 per receiving hour 
D)  $4.50 per receiving hour 
E)  cannot be determined from this information 
A)  $14 per receiving hour 
B)  $5 per receiving hour 
C)  $4 per receiving hour 
D)  $4.50 per receiving hour 
E)  cannot be determined from this information

____ activities are unnecessary activities.

____ is concerned with doing the activity right the first time it is performed.

A defective product is one that does conform to specifications.

Assume that a company takes 10,000 hours to produce 50,000 units of a product.What is the velocity for the company?

Match each item with the correct statement below. -Resources consumed by the activity in producing its output.

A factory produces 130,000 televisions per quarter.A total of 9,000 production hours are used by the factory per quarter. - Compute the velocity in units per hour.(Note: Round answer to two decimal places.)

Assume that a company takes 4,500 hours to produce 15,000 units of a product.What is the cycle time for the company? (Note: Round answer to two decimal places.)

Using only unit-based activity drivers to assign nonunit-related overhead costs can cause

Which of the following is a value-added activity?

Match each item with the correct statement below. -Activities necessary to remain in business

Activity analysis is the effort expended to identify those factors that are the root causes of activity costs.

Match each item with the correct statement below. -Process that answers the question "How many people perform the activities?"

_________________________ assigns costs to activities and then costs to cost objects.

Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Receiving provides 12,000 receiving hours and costs $60,000 per year.What is the activity rate for receiving?

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

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Exam 5: Activity-Based Costing and Management

____ activities are unnecessary activities.

____ is concerned with doing the activity right the first time it is performed.

A defective product is one that does conform to specifications.

Assume that a company takes 10,000 hours to produce 50,000 units of a product.What is the velocity for the company?

Match each item with the correct statement below. -Resources consumed by the activity in producing its output.

A factory produces 130,000 televisions per quarter.A total of 9,000 production hours are used by the factory per quarter. - Compute the velocity in units per hour.(Note: Round answer to two decimal places.)

Assume that a company takes 4,500 hours to produce 15,000 units of a product.What is the cycle time for the company? (Note: Round answer to two decimal places.)

Using only unit-based activity drivers to assign nonunit-related overhead costs can cause

Which of the following is a value-added activity?

Match each item with the correct statement below. -Activities necessary to remain in business

Activity analysis is the effort expended to identify those factors that are the root causes of activity costs.

Match each item with the correct statement below. -Process that answers the question "How many people perform the activities?"

_________________________ assigns costs to activities and then costs to cost objects.

Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Receiving provides 12,000 receiving hours and costs $60,000 per year.What is the activity rate for receiving?

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