Question 1

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 2

An example of activity reduction would be

Accepted Answer

A)  improving cycle time so the need for expediting is eliminated. 
B)  redesigning products to lead to a reduced cost set of activities. 
C)  designing a new product that uses components already used by another product. 
D)  reducing demand for customer complaint handling by improving product quality. 
A)  improving cycle time so the need for expediting is eliminated. 
B)  redesigning products to lead to a reduced cost set of activities. 
C)  designing a new product that uses components already used by another product. 
D)  reducing demand for customer complaint handling by improving product quality.

Question 3

Process improvement can be defined as

Accepted Answer

A)  The performance of a process to achieve major improvements. 
B)  The adoption of new processes to meet strategic objectives. 
C)  The incremental or continual increases in the efficiency of a process. 
D)  The expression of performance measures in financial terms. 
A)  The performance of a process to achieve major improvements. 
B)  The adoption of new processes to meet strategic objectives. 
C)  The incremental or continual increases in the efficiency of a process. 
D)  The expression of performance measures in financial terms.

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

A company has 5 days of finished goods inventory on hand to avoid stockouts. The carrying costs of the inventory average $2,500 per day. The non-value-added costs are

Accepted Answer

A)  $-0-. 
B)  500. 
C)  $2,500. 
D)  $12,500. 
A)  $-0-. 
B)  500. 
C)  $2,500. 
D)  $12,500.

Question 6

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 7

A firm's warranty costs are $125,000 per year. A competitor's warranty costs are $25,000 per year. The non-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 8

Cost reduction is a measure of activity improvement.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

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 12

The process which refers to incremental or continual increases in the efficiency of an existing product is called:

Accepted Answer

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

Question 13

A firm's warranty costs are $375,000 per year. A competitor's warranty costs are $175,000 per year. The non- value-added costs are

Accepted Answer

A)  $-0-. 
B)  $375,000. 
C)  $200,000. 
D)  $75,000. 
A)  $-0-. 
B)  $375,000. 
C)  $200,000. 
D)  $75,000.

Question 14

The resource(s) consumed by the activity in producing its output is(are) called:

Accepted Answer

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

Question 15

The successful implementation of activity-based management relies on support from higher __________ .

Accepted Answer

The answer of The successful implementation of activity-based management relies...

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

The resources consumed by the activity in producing its output are called .

Accepted Answer

The answer of The resources consumed by the activity in...

Question 18

Under what conditions would the activity capacity used be zero?

Accepted Answer

A)  If the activity is value-added. 
B)  If the activity is non-value-added. 
C)  If the activity is discretionary. 
D)  It would never be set at zero. 
A)  If the activity is value-added. 
B)  If the activity is non-value-added. 
C)  If the activity is discretionary. 
D)  It would never be set at zero.

Question 19

Given the following data:
   Required:
1. Determine the value-added and non-value added costs for each category for 2016 and 2017.
2. Prepare a trend report that compares 2016 and 2017.

Accepted Answer

Non value

Question 20

Describe how the activity-based management model combines the process and costing views. What are the steps involved in each? What are the objectives of the activity-based management system?

Accepted Answer

The purpose of activity-based management

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

An example of activity reduction would be

Process improvement can be defined as

An activity output measure is

A company has 5 days of finished goods inventory on hand to avoid stockouts. The carrying costs of the inventory average $2,500 per day. The non-value-added costs are

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

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

Cost reduction is a measure of activity improvement.

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

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 is NOT a common step in an ABM implementation model?

The process which refers to incremental or continual increases in the efficiency of an existing product is called:

A firm's warranty costs are $375,000 per year. A competitor's warranty costs are $175,000 per year. The non- value-added costs are

The resource(s) consumed by the activity in producing its output is(are) called:

The successful implementation of activity-based management relies on support from higher __________ .

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

The resources consumed by the activity in producing its output are called .

Under what conditions would the activity capacity used be zero?

Given the following data: Required: 1. Determine the value-added and non-value added costs for each category for 2016 and 2017. 2. Prepare a trend report that compares 2016 and 2017.

Describe how the activity-based management model combines the process and costing views. What are the steps involved in each? What are the objectives of the activity-based management system?

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

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

An example of activity reduction would be

Process improvement can be defined as

An activity output measure is

A company has 5 days of finished goods inventory on hand to avoid stockouts. The carrying costs of the inventory average $2,500 per day. The non-value-added costs are

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

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

Cost reduction is a measure of activity improvement.

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

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 is NOT a common step in an ABM implementation model?

The process which refers to incremental or continual increases in the efficiency of an existing product is called:

A firm's warranty costs are $375,000 per year. A competitor's warranty costs are $175,000 per year. The non- value-added costs are

The resource(s) consumed by the activity in producing its output is(are) called:

The successful implementation of activity-based management relies on support from higher __________ .

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

The resources consumed by the activity in producing its output are called .

Under what conditions would the activity capacity used be zero?

Given the following data: Required: 1. Determine the value-added and non-value added costs for each category for 2016 and 2017. 2. Prepare a trend report that compares 2016 and 2017.

Describe how the activity-based management model combines the process and costing views. What are the steps involved in each? What are the objectives of the activity-based management system?

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