Question 1

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

Accepted Answer

Kaizen costing is the effort to reduce c

Question 2

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

Question 3

Bandolero Corporation 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. The value-added costs for
Labor are

Accepted Answer

A)  $792,000. 
B)  $900,000. 
C)  $84,000. 
D)  $75,000. 
A)  $792,000. 
B)  $900,000. 
C)  $84,000. 
D)  $75,000.

Question 4

For non-value-added activities that are unnecessary, the standard quantity is

Accepted Answer

A)  one. 
B)  zero. 
C)  actual quantity minus standard price. 
D)  actual quantity plus standard price. 
A)  one. 
B)  zero. 
C)  actual quantity minus standard price. 
D)  actual quantity plus standard price.

Question 5

One of the major reasons for the failure of ABM is lack of upper management support.

Accepted Answer

A) True 
 B)False

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

Reducing non-value added costs decreases activity deficiency.

Accepted Answer

A) True 
 B)False

Question 8

Implementing an activity-based management requires careful planning and execution.

Accepted Answer

A) True 
 B)False

Question 9

Mattison Company has developed cost formulas for the drivers of the following production activities:   If the actual activity was 20 setups and the actual fixed cost for inspections was $28,000 and the variable cost for
Inspections was $5,000, the total variance for inspections is due to

Accepted Answer

A)  unfavorable variance on fixed costs. 
B)  favorable variance on fixed costs. 
C)  favorable variance on variable costs. 
D)  unfavorable variance on variable costs. 
A)  unfavorable variance on fixed costs. 
B)  favorable variance on fixed costs. 
C)  favorable variance on variable costs. 
D)  unfavorable variance on variable costs.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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.

Question 12

The process which involves choosing among various sets of activities that are caused by competing strategies.

Accepted Answer

A)  Activity sharing 
B)  Activity selection 
C)  Activity elimination 
D)  Activity reduction 
A)  Activity sharing 
B)  Activity selection 
C)  Activity elimination 
D)  Activity reduction

Question 13

Activities that contribute to customer value and are necessary to remain in business are called activities.

Accepted Answer

The answer of Activities that contribute to customer value and...

Question 14

Each unit of product requires 16 pounds of material. Due to scrap and rework, each unit has been averaging 18 pounds of material. The material costs $4 per pound. The non-value-added costs are

Accepted Answer

A)  $8. 
B)  $4. 
C)  $64. 
D)  $72. 
A)  $8. 
B)  $4. 
C)  $64. 
D)  $72.

Question 15

Livingston Company has developed capacity standards. Information about a non-value-added activity is as follows: Standard cost of the activity capacity acquired $60,000 Standard cost of the activity capacity used -0-
Standard cost of the actual activity used 50,000
The volume variance is

Accepted Answer

A)  $10,000 unfavorable. 
B)  $10,000 favorable. 
C)  $60,000 favorable. 
D)  $60,000 unfavorable. 
A)  $10,000 unfavorable. 
B)  $10,000 favorable. 
C)  $60,000 favorable. 
D)  $60,000 unfavorable.

Question 16

Process improvement refers to incremental and erratic increases in the efficiency of an existing process.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

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

Question 18

A well accepted approach for reducing costs by eliminating waste is called costing.

Accepted Answer

The answer of A well accepted approach for reducing costs...

Question 19

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

Accepted Answer

A)  assembly 
B)  scheduling 
C)  finishing 
D)  All of these are value-added activities. 
A)  assembly 
B)  scheduling 
C)  finishing 
D)  All of these are value-added activities.

Question 20

Which of the following is NOT part of the cost dimension 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

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

Goodyear,, 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.

Bandolero Corporation 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. The value-added costs for Labor are

For non-value-added activities that are unnecessary, the standard quantity is

One of the major reasons for the failure of ABM is lack of upper management support.

Which of the following is a value-added activity?

Reducing non-value added costs decreases activity deficiency.

Implementing an activity-based management requires careful planning and execution.

Mattison Company has developed cost formulas for the drivers of the following production activities: If the actual activity was 20 setups and the actual fixed cost for inspections was $28,000 and the variable cost for Inspections was $5,000, the total variance for inspections is due to

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

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

The process which involves choosing among various sets of activities that are caused by competing strategies.

Activities that contribute to customer value and are necessary to remain in business are called activities.

Each unit of product requires 16 pounds of material. Due to scrap and rework, each unit has been averaging 18 pounds of material. The material costs $4 per pound. The non-value-added costs are

Livingston Company has developed capacity standards. Information about a non-value-added activity is as follows: Standard cost of the activity capacity acquired $60,000 Standard cost of the activity capacity used -0- Standard cost of the actual activity used 50,000 The volume variance is

Process improvement refers to incremental and erratic increases in the efficiency of an existing process.

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

A well accepted approach for reducing costs by eliminating waste is called costing.

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

Which of the following is NOT part of the cost dimension of the activity-based management model?

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

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

Goodyear,, 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.

Bandolero Corporation 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. The value-added costs for Labor are

For non-value-added activities that are unnecessary, the standard quantity is

One of the major reasons for the failure of ABM is lack of upper management support.

Which of the following is a value-added activity?

Reducing non-value added costs decreases activity deficiency.

Implementing an activity-based management requires careful planning and execution.

Mattison Company has developed cost formulas for the drivers of the following production activities: If the actual activity was 20 setups and the actual fixed cost for inspections was $28,000 and the variable cost for Inspections was $5,000, the total variance for inspections is due to

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

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

The process which involves choosing among various sets of activities that are caused by competing strategies.

Activities that contribute to customer value and are necessary to remain in business are called activities.

Each unit of product requires 16 pounds of material. Due to scrap and rework, each unit has been averaging 18 pounds of material. The material costs $4 per pound. The non-value-added costs are

Livingston Company has developed capacity standards. Information about a non-value-added activity is as follows: Standard cost of the activity capacity acquired $60,000 Standard cost of the activity capacity used -0- Standard cost of the actual activity used 50,000 The volume variance is

Process improvement refers to incremental and erratic increases in the efficiency of an existing process.

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

A well accepted approach for reducing costs by eliminating waste is called costing.

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

Which of the following is NOT part of the cost dimension of the activity-based management model?

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