Question 1

A technique for improving performance of activities and processes that searches for best practices is called

Accepted Answer

A)  value-added reporting. 
B)  Kaizen costing. 
C)  trend reporting. 
D)  benchmarking. 
A)  value-added reporting. 
B)  Kaizen costing. 
C)  trend reporting. 
D)  benchmarking.

Question 2

The activities necessary to remain in business are called:

Accepted Answer

A)  Value-added activities 
B)  Activity inputs 
C)  Activity outputs 
D)  Activity drivers 
A)  Value-added activities 
B)  Activity inputs 
C)  Activity outputs 
D)  Activity drivers

Question 3

The purpose of trend reporting on non-value-added costs is to

Accepted Answer

A)  trace resources to cost objectives. 
B)  assess value content. 
C)  define root causes. 
D)  see if cost reductions occurred as expected. 
A)  trace resources to cost objectives. 
B)  assess value content. 
C)  define root causes. 
D)  see if cost reductions occurred as expected.

Question 4

Lionel, Inc., has developed ideal standards for four activities: labor, materials, inspection, and receiving.
Information is as follows:
   The actual prices paid per unit of each activity driver were equal to the standard prices.
Required:
Complete the following cost report.

Accepted Answer

The answer of Lionel, Inc., has developed ideal standards for...

Question 5

The process of improving performance and constantly eliminating waste is known as __________ .

Accepted Answer

continuous

Question 6

Which of the following is NOT an objective of activity-based management?

Accepted Answer

A)  to improve decision making through better cost information 
B)  to increase the number of activities necessary to perform processes 
C)  to encourage cost reduction through continuous improvement 
D)  to increase profitability 
A)  to improve decision making through better cost information 
B)  to increase the number of activities necessary to perform processes 
C)  to encourage cost reduction through continuous improvement 
D)  to increase profitability

Question 7

The process of identifying, describing, and evaluating the activities an organization performs is called:

Accepted Answer

A)  Activity inputs 
B)  Driver analysis 
C)  Activity analysis 
D)  Value-added activities 
A)  Activity inputs 
B)  Driver analysis 
C)  Activity analysis 
D)  Value-added activities

Question 8

The unused capacity variance is

Accepted Answer

A)  the difference in costs between activity availability and activity usage. 
B)  the difference in costs between actual activity level acquired and the value-added standard quantity of activity that should have been used. 
C)  the difference in costs between practical capacity of activity and the standard capacity of the activity. 
D)  none of these. 
A)  the difference in costs between activity availability and activity usage. 
B)  the difference in costs between actual activity level acquired and the value-added standard quantity of activity that should have been used. 
C)  the difference in costs between practical capacity of activity and the standard capacity of the activity. 
D)  none of these.

Question 9

Process value analysis maximizes systemwide performance by emphasizing activity management.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following process dimensions of the activity-based management model deals with "what"?

Accepted Answer

A)  resources 
B)  driver analysis 
C)  activities 
D)  performance measures 
A)  resources 
B)  driver analysis 
C)  activities 
D)  performance measures

Question 11

Implementing an activity-based management requires careful planning and execution.

Accepted Answer

A) True 
 B)False

Question 12

Salvador Company has developed capacity standards. Information is as follows for a value-added activity:   The volume variance is

Accepted Answer

A)  There is no variance. 
B)  $40,000 unfavorable. 
C)  $60,000 unfavorable. 
D)  $20,000 unfavorable. 
A)  There is no variance. 
B)  $40,000 unfavorable. 
C)  $60,000 unfavorable. 
D)  $20,000 unfavorable.

Question 13

A company has 5 days of finished goods inventory on hand to avoid stockouts. The carrying costs of the inventory average $5,000 per day. The value-added costs are

Accepted Answer

A)  $-0-. 
B)  $1,000. 
C)  $5,000. 
D)  $25,000. 
A)  $-0-. 
B)  $1,000. 
C)  $5,000. 
D)  $25,000.

Question 14

Which of the following focuses on the relationship of activity outputs to activity inputs?

Accepted Answer

A)  activity reduction 
B)  quality 
C)  time 
D)  efficiency 
A)  activity reduction 
B)  quality 
C)  time 
D)  efficiency

Question 15

The responsibility accounting system that uses both operational and financial measures is called __________ responsibility.
or

Accepted Answer

activity-b

Question 16

Activity-based costing is very concerned with waste issues.

Accepted Answer

A) True 
 B)False

Question 17

A time-and-motion study revealed that it should take 3 hours to produce a product that currently takes 7.5 hours to produce. Labor is $18 per hour. The non-value-added costs are

Accepted Answer

A)  $27. 
B)  $54. 
C)  $81. 
D)  $0. 
A)  $27. 
B)  $54. 
C)  $81. 
D)  $0.

Question 18

Which of the following is NOT a common step in an ABM implementation model?

Accepted Answer

A)  Systems planning 
B)  Assess Value Content of Activities 
C)  Identify, Define, and Classify Activities 
D)  All of these are common steps. 
A)  Systems planning 
B)  Assess Value Content of Activities 
C)  Identify, Define, and Classify Activities 
D)  All of these are common steps.

Question 19

Kaizen costing is concerned with reducing the costs by identifying small, continuous improvement for existing products and processes.

Accepted Answer

A) True 
 B)False

Question 20

Buoungiorno Manufacturing has developed the following standards for its activities: 
Assume the materials usage and purchasing costs correspond to flexible resources that acquired as needed and that inspections use resources that are acquired in blocks of 2,000 hours. The actual prices paid for inputs equal the standard prices.

Required:

1.      Assume that continuous improvement efforts reduce the demand for inspection by 30 percent during the year, which drops the actual activity usage by 30 percent. Calculate the volume and unused capacity variances for inspection activity, materials usage and purchasing. Explain the meaning of these variances.

2.      Prepare a cost report that shows the value- and non-value-added costs.

3.      Buoungiorno wants to reduce all non-value added costs by 30 percent. What Kaizen standards would be used to evaluate the company's progress? What would be the savings in resource spending?

Accepted Answer

1. @#IMG-DLM&
The activity volume variance is a no

A technique for improving performance of activities and processes that searches for best practices is called

The activities necessary to remain in business are called:

The purpose of trend reporting on non-value-added costs is to

Lionel, Inc., has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. Required: Complete the following cost report.

The process of improving performance and constantly eliminating waste is known as __________ .

Which of the following is NOT an objective of activity-based management?

The process of identifying, describing, and evaluating the activities an organization performs is called:

The unused capacity variance is

Process value analysis maximizes systemwide performance by emphasizing activity management.

Which of the following process dimensions of the activity-based management model deals with "what"?

Implementing an activity-based management requires careful planning and execution.

Salvador Company has developed capacity standards. Information is as follows for a value-added activity: The volume variance is

A company has 5 days of finished goods inventory on hand to avoid stockouts. The carrying costs of the inventory average $5,000 per day. The value-added costs are

Which of the following focuses on the relationship of activity outputs to activity inputs?

The responsibility accounting system that uses both operational and financial measures is called __________ responsibility. or

Activity-based costing is very concerned with waste issues.

A time-and-motion study revealed that it should take 3 hours to produce a product that currently takes 7.5 hours to produce. Labor is $18 per hour. The non-value-added costs are

Which of the following is NOT a common step in an ABM implementation model?

Kaizen costing is concerned with reducing the costs by identifying small, continuous improvement for existing products and processes.

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 12: Activity-Based Management

A technique for improving performance of activities and processes that searches for best practices is called

The activities necessary to remain in business are called:

The purpose of trend reporting on non-value-added costs is to

Lionel, Inc., has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. Required: Complete the following cost report.

The process of improving performance and constantly eliminating waste is known as __________ .

Which of the following is NOT an objective of activity-based management?

The process of identifying, describing, and evaluating the activities an organization performs is called:

The unused capacity variance is

Process value analysis maximizes systemwide performance by emphasizing activity management.

Which of the following process dimensions of the activity-based management model deals with "what"?

Implementing an activity-based management requires careful planning and execution.

Salvador Company has developed capacity standards. Information is as follows for a value-added activity: The volume variance is

A company has 5 days of finished goods inventory on hand to avoid stockouts. The carrying costs of the inventory average $5,000 per day. The value-added costs are

Which of the following focuses on the relationship of activity outputs to activity inputs?

The responsibility accounting system that uses both operational and financial measures is called __________ responsibility. or

Activity-based costing is very concerned with waste issues.

A time-and-motion study revealed that it should take 3 hours to produce a product that currently takes 7.5 hours to produce. Labor is $18 per hour. The non-value-added costs are

Which of the following is NOT a common step in an ABM implementation model?

Kaizen costing is concerned with reducing the costs by identifying small, continuous improvement for existing products and processes.

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters