Question 1

Livingston Company has developed capacity standards. Information is as follows:   The unused capacity variance is

Accepted Answer

A)  There is no variance. 
B)  $20,000 favorable. 
C)  $30,000 favorable. 
D)  $50,000 favorable. 
A)  There is no variance. 
B)  $20,000 favorable. 
C)  $30,000 favorable. 
D)  $50,000 favorable.

Question 2

What is process value analysis?

Accepted Answer

Process value analysis focuses on accoun

Question 3

The Opportunist Company recorded the following activities.Determine the amount of value-added and non-value-added costs.

Accepted Answer

The answer of The Opportunist Company recorded the following activities.Determine...

Question 4

An activity output measure is

Accepted Answer

A)  the number of outputs from a process. 
B)  the cost of the activity measured. 
C)  the effort expended to identify root causes. 
D)  the number of times an activity is performed. 
A)  the number of outputs from a process. 
B)  the cost of the activity measured. 
C)  the effort expended to identify root causes. 
D)  the number of times an activity is performed.

Question 5

When different units that perform the same types of activities within the same organization are compared to the unit with the best performance, this practice is called

Accepted Answer

A)  variance benchmarking. 
B)  competitive benchmarking. 
C)  external benchmarking. 
D)  internal benchmarking. 
A)  variance benchmarking. 
B)  competitive benchmarking. 
C)  external benchmarking. 
D)  internal benchmarking.

Question 6

Which of the following is a value-added activity?

Accepted Answer

A)  moving 
B)  inspection 
C)  processing 
D)  waiting 
A)  moving 
B)  inspection 
C)  processing 
D)  waiting

Question 7

Your company keeps 15 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $5,000 per day. A competitor keeps 12 days of inventory on hand, and the competitor's carrying costs average $3,000 per day. The value-added costs are

Accepted Answer

A)  $-0-. 
B)  $5,000. 
C)  $30,000. 
D)  $75,000. 
A)  $-0-. 
B)  $5,000. 
C)  $30,000. 
D)  $75,000.

Question 8

Which of the following is an example of a value-added activity?

Accepted Answer

A)  supervision of production workers 
B)  inspection of products 
C)  scheduling of production 
D)  All of these are value-added activities. 
A)  supervision of production workers 
B)  inspection of products 
C)  scheduling of production 
D)  All of these are value-added activities.

Question 9

Given the following data:
   Required:

Accepted Answer

Non value

Question 10

Suburbia, Inc., sells one of its products for $150 each. Sales volume averages 800 units per year. Recently, its main competitor reduced the price of its product to $130. Suburbia expects sales to drop dramatically unless it matches the competitor's price. In addition, the current profit per unit must be maintained. Information about the product (for production of 800) is as follows:
   Required:

Accepted Answer

The answer of Suburbia, Inc., sells one of its products...

Question 11

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

Accepted Answer

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

Question 12

Which of the following is NOT a necessary condition for classification as a value-added activity?

Accepted Answer

A)  The activity produces no change of state. 
B)  The change of state was not achievable by preceding activities. 
C)  Activity enables other activities to be performed. 
D)  All of these are necessary conditions. 
A)  The activity produces no change of state. 
B)  The change of state was not achievable by preceding activities. 
C)  Activity enables other activities to be performed. 
D)  All of these are necessary conditions.

Question 13

Process value consists of three elements: .driver analysis, activity analysis, and performance measurement.

Accepted Answer

A) True 
 B)False

Question 14

Livingston Company has developed capacity standards. Information is as follows:   The volume variance is

Accepted Answer

A)  there is no variance. 
B)  $50,000 unfavorable. 
C)  $20,000 unfavorable. 
D)  $30,000 unfavorable. 
A)  there is no variance. 
B)  $50,000 unfavorable. 
C)  $20,000 unfavorable. 
D)  $30,000 unfavorable.

Question 15

Mattison Company has developed cost formulas for the drivers of the following production activities:   The activity levels are projected to be as follows:
  What is budgeted for this projected activity level?

Accepted Answer

A)  $3,504,450 
B)  $1,655,430 
C)  $165,543 
D)  $295,150 
A)  $3,504,450 
B)  $1,655,430 
C)  $165,543 
D)  $295,150

Question 16

Identifying, defining, and classifying activities require more attention for ABC than ABM.

Accepted Answer

A) True 
 B)False

Question 17

The continuous improvement subcycle of Kaizen costing is defined by what sequence?

Accepted Answer

A)  check-do-plan-act 
B)  do-check-plan-act 
C)  plan-do-check-act 
D)  None of these is the correct sequence. 
A)  check-do-plan-act 
B)  do-check-plan-act 
C)  plan-do-check-act 
D)  None of these is the correct sequence.

Question 18

Activity flexible budgeting differs from traditional approaches by using more than __________ drivers to predict costs.
or

Accepted Answer

unit-level

Question 19

The process which refers to the performance of a process in a new way to achieve major improvements is called:

Accepted Answer

A)  Process improvement 
B)  Process creation 
C)  Process innovation 
D)  Process efficiency 
A)  Process improvement 
B)  Process creation 
C)  Process innovation 
D)  Process efficiency

Question 20

Mattress Company sells one of its products for $35 each. Sales volume averages 2,400 units per year. Recently, its main competitor reduced the price of its product to $30. Mattress Company expects sales to drop dramatically unless it matches the competitor's price. In addition, the current profit per unit must be maintained. Information about the product (for production of 2,400) is as follows:   The non-value-added cost per unit is

Accepted Answer

A)  $4.525. 
B)  $4.190. 
C)  $4.875. 
D)  $3.475. 
A)  $4.525. 
B)  $4.190. 
C)  $4.875. 
D)  $3.475.

Livingston Company has developed capacity standards. Information is as follows: The unused capacity variance is

What is process value analysis?

The Opportunist Company recorded the following activities.Determine the amount of value-added and non-value-added costs.

An activity output measure is

When different units that perform the same types of activities within the same organization are compared to the unit with the best performance, this practice is called

Which of the following is a value-added activity?

Your company keeps 15 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $5,000 per day. A competitor keeps 12 days of inventory on hand, and the competitor's carrying costs average $3,000 per day. The value-added costs are

Which of the following is an example of a value-added activity?

Given the following data: Required:

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

Which of the following is NOT a necessary condition for classification as a value-added activity?

Process value consists of three elements: .driver analysis, activity analysis, and performance measurement.

Livingston Company has developed capacity standards. Information is as follows: The volume variance is

Mattison Company has developed cost formulas for the drivers of the following production activities: The activity levels are projected to be as follows: What is budgeted for this projected activity level?

Identifying, defining, and classifying activities require more attention for ABC than ABM.

The continuous improvement subcycle of Kaizen costing is defined by what sequence?

Activity flexible budgeting differs from traditional approaches by using more than __________ drivers to predict costs. or

The process which refers to the performance of a process in a new way to achieve major improvements is called:

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

Livingston Company has developed capacity standards. Information is as follows: The unused capacity variance is

What is process value analysis?

The Opportunist Company recorded the following activities.Determine the amount of value-added and non-value-added costs.

An activity output measure is

When different units that perform the same types of activities within the same organization are compared to the unit with the best performance, this practice is called

Which of the following is a value-added activity?

Your company keeps 15 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $5,000 per day. A competitor keeps 12 days of inventory on hand, and the competitor's carrying costs average $3,000 per day. The value-added costs are

Which of the following is an example of a value-added activity?

Given the following data: Required:

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

Which of the following is NOT a necessary condition for classification as a value-added activity?

Process value consists of three elements: .driver analysis, activity analysis, and performance measurement.

Livingston Company has developed capacity standards. Information is as follows: The volume variance is

Mattison Company has developed cost formulas for the drivers of the following production activities: The activity levels are projected to be as follows: What is budgeted for this projected activity level?

Identifying, defining, and classifying activities require more attention for ABC than ABM.

The continuous improvement subcycle of Kaizen costing is defined by what sequence?

Activity flexible budgeting differs from traditional approaches by using more than __________ drivers to predict costs. or

The process which refers to the performance of a process in a new way to achieve major improvements is called:

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