Exam 3: Activity-Based Management

Describe activity-based management.Compare activity-based management to activity-based costing.How does activity-based costing improve overhead allocation in a manufacturing environment?

For which one of the following activities is it more difficult to obtain reasonable measures to allocate the costs?

Use the following information to answer the following questions.Magnolia Company makes products B546 and C245.Information for overhead costs and for the two products appears below.The company makes 100,000 units of product B546 each year and 20,000 units of product C245. Use the information from the Magnolia Company and assume that Activity Based Costing is used,with each activity in its own cost pool.What is the rate per setup that should be used to assign set up cost to the two products?

What is the firststep in the activity analysis process used to implement Activity Based Management?

Strategic uses of activity-based management include developing strategy and which of the following?

Use the following information to answer the following questions.Magnolia Company makes products B546 and C245.Information for overhead costs and for the two products appears below.The company makes 100,000 units of product B546 each year and 20,000 units of product C245. What will be the total overhead cost of product B546 if all overhead is assigned using ABC and each activity above is treated as a separate pool?

Which of the following are true regarding activity-based costing (ABC)?

Which of the following statements is true concerning how companies benefit from using an activity-based accounting system?

Which of the following statement accurately describes activity-based costing (ABC)?

Which term refers to categorizing costs according to whether they are capacity,product,customer,batch,or unit costs?

Which one of the following activities is appropriate as a cost driver for material handling costs?

Use the following information to answer the following questions.Magnolia Company makes products B546 and C245.Information for overhead costs and for the two products appears below.The company makes 100,000 units of product B546 each year and 20,000 units of product C245. What will be the total overhead cost of product C245 if all overhead is assigned using ABC and each activity above is treated as a separate pool?

Which statement best describes an activity center?

Gem Systems Gem Systems uses an activity-based costing system.The company has gathered the following information concerning various cost pools and activity drivers; The following data was collected and is specific to Job 150. Refer to Gem Systems.What is the amount of electricity cost allocated to Job 150?

Activity-based costing first assigns costs to activities,then to

In traditional costing systems overhead costs are allocated on volume of production or sales,.This methodology fails to take into consideration that the demand for overhead activities is also driven by which of the following?

Explain how activity-based management can reduce customer response time at your local motor vehicle administration.

Resources used versus resources supplied.Here is information about resources for Business Unlimited,which produces trade publications for various industries: Required: a.Compute unused capacity for these items. b.Management wants no more than 20 percent of total costs to be incurred for unused capacity.How well is Business Unlimited doing? (Business Unlimited;Resources used versus resources supplied. )

The cost hierarchy categorizes costs according to whether they are capacity,product,customer,batch,or unit costs.Management of an airline would most likely consider new flights using existing aircraft on established routes as being which of the following?

Gem Systems Gem Systems uses an activity-based costing system.The company has gathered the following information concerning various cost pools and activity drivers; The following data was collected and is specific to Job 150. Refer to Gem Systems.Calculate the unit cost for the Electricity Costs activity cost pool.