Question 1

Which of the following is not one of the basic procedures related to activity-based costing?

Accepted Answer

A) Identify the activity 
B) Create an associated activity cost pool 
C) Compute internal failure costs 
D) Calculate the cost per unit of activity 
A) Identify the activity 
B) Create an associated activity cost pool 
C) Compute internal failure costs 
D) Calculate the cost per unit of activity

Question 2

Identifying value-added activities
Pomme Farms operates an apple cider press.The production of cider involves the following activities:
(1. )Inspect incoming shipments of apples.
(2. )Store apples in adjacent barn until needed.
(3. )Transport apples from storage barn to the press building.
(4. )Load apples onto the conveyor leading to the press.
(5. )Run press.
(6. )Fill bottles with completed cider.
(7. )Dispose of waste from press.
(8. )Store filled bottles until sale.
Requirements:
(a. )Identify Pomme's value-added activities.
(b. )Identify any non-value added activities performed by Pomme.

Accepted Answer

(a)Value-added activities would include:

Question 3

The manufacturing efficiency ratio equals:

Accepted Answer

A) Value-added time divided by cycle time. 
B) Value-added time multiplied by cycle time. 
C) Cycle time divided by value-added time. 
D) The average of cycle time divided by value-added time. 
A) Value-added time divided by cycle time. 
B) Value-added time multiplied by cycle time. 
C) Cycle time divided by value-added time. 
D) The average of cycle time divided by value-added time.

Question 4

To arrive at a target cost,the target selling price and a satisfactory profit margin are added together.

Accepted Answer

A) True 
 B)False

Question 5

In the target costing process,target price is computed by adding the desired profit margin to the target product cost.

Accepted Answer

A) True 
 B)False

Question 6

[The following information applies to the questions displayed below.]
Summit Products,Inc.is interested in producing and selling an improved widget.Market research indicates that customers would be willing to pay $90 for such a widget and that 50,000 units could be sold each year at this price.The current cost to produce the widget is estimated to be $65.
-If Summit Products requires a 25% return on sales to undertake production,what is the target cost for the new widget?

Accepted Answer

A) $65.00 
B) $67.50 
C) $80.00 
D) $81.25 
A) $65.00 
B) $67.50 
C) $80.00 
D) $81.25

Question 7

Cycle time includes:

Accepted Answer

A) Processing time,storage and waiting time,movement time,and inspection time. 
B) Processing time,inspection time,and inventory time. 
C) Processing time,storage and waiting time,finishing time,and selling time. 
D) Processing time,storage and waiting time,movement time,and finishing time. 
A) Processing time,storage and waiting time,movement time,and inspection time. 
B) Processing time,inspection time,and inventory time. 
C) Processing time,storage and waiting time,finishing time,and selling time. 
D) Processing time,storage and waiting time,movement time,and finishing time.

Question 8

[The following information applies to the questions displayed below.]
The Abrams Corporation incurred the following quality costs for the year ending December 31,2018:
  
-What are the total external failure costs for the Abrams Corporation?

Accepted Answer

A) $38,300 
B) $34,500 
C) $19,700 
D) $35,250 
A) $38,300 
B) $34,500 
C) $19,700 
D) $35,250

Question 9

Which of the following is not commonly used to measure product quality in a just-in-time system?

Accepted Answer

A) Defects per million 
B) Merchandise returns 
C) Manufacturing efficiency ratio 
D) Warranty claims 
A) Defects per million 
B) Merchandise returns 
C) Manufacturing efficiency ratio 
D) Warranty claims

Question 10

Which of the following is not an example of the cost of quality?

Accepted Answer

A) Prevention costs 
B) Internal failure costs 
C) Target costs 
D) Appraisal costs 
A) Prevention costs 
B) Internal failure costs 
C) Target costs 
D) Appraisal costs

Which of the following is not one of the basic procedures related to activity-based costing?

The manufacturing efficiency ratio equals:

To arrive at a target cost,the target selling price and a satisfactory profit margin are added together.

In the target costing process,target price is computed by adding the desired profit margin to the target product cost.

Cycle time includes:

[The following information applies to the questions displayed below.] The Abrams Corporation incurred the following quality costs for the year ending December 31,2018: -What are the total external failure costs for the Abrams Corporation?

Which of the following is not commonly used to measure product quality in a just-in-time system?

Which of the following is not an example of the cost of quality?

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting

Job Order Cost Systems and Overhead Allocations

Process Costing

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

the Time Value of Money: Future Amounts and Present Values

Forms of Business Organization

Filters

Exam 19: Costing and the Value Chain

Which of the following is not one of the basic procedures related to activity-based costing?

The manufacturing efficiency ratio equals:

To arrive at a target cost,the target selling price and a satisfactory profit margin are added together.

In the target costing process,target price is computed by adding the desired profit margin to the target product cost.

Cycle time includes:

[The following information applies to the questions displayed below.] The Abrams Corporation incurred the following quality costs for the year ending December 31,2018: -What are the total external failure costs for the Abrams Corporation?

Which of the following is not commonly used to measure product quality in a just-in-time system?

Which of the following is not an example of the cost of quality?

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting

Job Order Cost Systems and Overhead Allocations

Process Costing

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

the Time Value of Money: Future Amounts and Present Values

Forms of Business Organization

Filters