Question 1

The capacity variance is composed of the unused capacity variance and

Accepted Answer

A)  the activity volume variance. 
B)  the used capacity variance. 
C)  the activity benchmark. 
D)  the value-added standard. 
A)  the activity volume variance. 
B)  the used capacity variance. 
C)  the activity benchmark. 
D)  the value-added standard. A

Question 2

What is Kaizen costing? How does activity analysis help reduce costs?

Accepted Answer

Kaizen costing is the effort to reduce costs of existing products and processes.It is characterized by constant, incremental improvements to existing processes and products.
Activity analysis can reduce costs in four ways:

Question 3

A 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 non-value-added costs would be

Accepted Answer

A)  $-0-. 
B)  $30,000. 
C)  $75,000. 
D)  $80,000. 
A)  $-0-. 
B)  $30,000. 
C)  $75,000. 
D)  $80,000. C

Question 4

Which of the following is descriptive of financial-based responsibility accounting?

Accepted Answer

A)  It assumes that activities are linked. 
B)  It assigns responsibility to organization units. 
C)  Its control emphasis is costs. 
D)  Its goal is continuous improvement. 
A)  It assumes that activities are linked. 
B)  It assigns responsibility to organization units. 
C)  Its control emphasis is costs. 
D)  Its goal is continuous improvement.

Question 5

_______________ are those activities necessary to remain in business.

Accepted Answer

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

Question 6

Which of the following is part of the cost and process dimensions of the activity-based management model?

Accepted Answer

A)  resources 
B)  driver analysis 
C)  activities 
D)  cost objects 
A)  resources 
B)  driver analysis 
C)  activities 
D)  cost objects

Question 7

_______________ are the results or products of an activity.

Accepted Answer

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

Question 8

Gibson, 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 Gibson, Inc., has developed ideal standards for...

Question 9

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

Question 10

Value-added costs equal standard quantity times

Accepted Answer

A)  non-value-added costs. 
B)  currently attainable standards. 
C)  standard price. 
D)  actual price. 
A)  non-value-added costs. 
B)  currently attainable standards. 
C)  standard price. 
D)  actual price.

Question 11

_______________ refers to the performance of a process in a new way to achieve major improvements.

Accepted Answer

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

Question 12

A firm's warranty costs are $125,000 per year.A competitor's warranty costs are $25,000 per year. 
-The value-added costs are

Accepted Answer

A)  $125,000. 
B)  $100,000. 
C)  $25,000. 
D)  $-0-. 
A)  $125,000. 
B)  $100,000. 
C)  $25,000. 
D)  $-0-.

Question 13

Which of the following is a financial measure of activity efficiency?

Accepted Answer

A)  activity flexible budgeting 
B)  trends in activity costs 
C)  benchmarking 
D)  all of these 
A)  activity flexible budgeting 
B)  trends in activity costs 
C)  benchmarking 
D)  all of these

Question 14

What is responsibility accounting? Compare and contrast financial-based responsibility accounting with activity-based responsibility accounting.

Accepted Answer

Responsibility accounting is a fundament

Question 15

Processes are

Accepted Answer

A)  tasks that must be completed to do work. 
B)  outcomes of activities. 
C)  activities linked to perform a specific objective. 
D)  the linked set of value-creating activities from disposal of materials to disposal of the finished product by end consumers. 
A)  tasks that must be completed to do work. 
B)  outcomes of activities. 
C)  activities linked to perform a specific objective. 
D)  the linked set of value-creating activities from disposal of materials to disposal of the finished product by end consumers.

Question 16

Which of the following is NOT an objective of responsibility accounting?

Accepted Answer

A)  to redesign processes to be more effective 
B)  to align individual and organizational goals 
C)  to influence behavior 
D)  to increase profitability 
A)  to redesign processes to be more effective 
B)  to align individual and organizational goals 
C)  to influence behavior 
D)  to increase profitability

Question 17

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 18

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

Accepted Answer

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

Question 19

Setup time for a product is 12 hours.A firm that uses JIT and produces the same product has reduced setup time by 1 hour.Setup labor is $20 per hour.If the company wants to reduce non-value-added costs by 40 percent next year, the currently attainable standard for setup time would be

Accepted Answer

A)  7.6 hours. 
B)  7.2 hours. 
C)  6.6 hours. 
D)  4.8 hours. 
A)  7.6 hours. 
B)  7.2 hours. 
C)  6.6 hours. 
D)  4.8 hours.

Question 20

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.

The capacity variance is composed of the unused capacity variance and

What is Kaizen costing? How does activity analysis help reduce costs?

A 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 non-value-added costs would be

Which of the following is descriptive of financial-based responsibility accounting?

_______________ are those activities necessary to remain in business.

Which of the following is part of the cost and process dimensions of the activity-based management model?

_______________ are the results or products of an activity.

Gibson, 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.

Value-added costs equal standard quantity times

_______________ refers to the performance of a process in a new way to achieve major improvements.

A firm's warranty costs are $125,000 per year.A competitor's warranty costs are $25,000 per year. -The value-added costs are

Which of the following is a financial measure of activity efficiency?

What is responsibility accounting? Compare and contrast financial-based responsibility accounting with activity-based responsibility accounting.

Processes are

Which of the following is NOT an objective of responsibility accounting?

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

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

Setup time for a product is 12 hours.A firm that uses JIT and produces the same product has reduced setup time by 1 hour.Setup labor is $20 per hour.If the company wants to reduce non-value-added costs by 40 percent next year, the currently attainable standard for setup time would be

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

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

The capacity variance is composed of the unused capacity variance and

What is Kaizen costing? How does activity analysis help reduce costs?

A 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 non-value-added costs would be

Which of the following is descriptive of financial-based responsibility accounting?

_______________ are those activities necessary to remain in business.

Which of the following is part of the cost and process dimensions of the activity-based management model?

_______________ are the results or products of an activity.

Gibson, 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.

Value-added costs equal standard quantity times

_______________ refers to the performance of a process in a new way to achieve major improvements.

A firm's warranty costs are $125,000 per year.A competitor's warranty costs are $25,000 per year. -The value-added costs are

Which of the following is a financial measure of activity efficiency?

What is responsibility accounting? Compare and contrast financial-based responsibility accounting with activity-based responsibility accounting.

Processes are

Which of the following is NOT an objective of responsibility accounting?

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

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

Setup time for a product is 12 hours.A firm that uses JIT and produces the same product has reduced setup time by 1 hour.Setup labor is $20 per hour.If the company wants to reduce non-value-added costs by 40 percent next year, the currently attainable standard for setup time would be

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

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