ACG 3341 Exam 1 Questions With Complete Solutions
5 steps to decision making Correct Answers *PLANNING*:
1. identify problem and uncertainties
2. obtain information
3. make predictions about the future
4. choose between alternatives
*CONTROL*:
5. implement, evaluate, and learn
ABC in service and merchandising Correct Answers 1. health
care
2. banking
3. telecommunication
4. retailing
5. transportation
ABC valuable for serv based comps bc Correct Answers
majority of costs are indirect
activity based costing Correct Answers calculates costs of
individual activities and assigns costs to cost objects on the basis
of the mix of activities
Activity-based costing can be used by which type of the
following organizations
manufacturing organizations
service organizations
non-profit organizations
all of the above Correct Answers all of the above
, actual costing Correct Answers uses actual rates * actual
activity
adjusted allocation rate approach Correct Answers all
allocations are recalculated with actual rate
allocate costs by: 1, 2, 3 Correct Answers 1. C & E relationship
2. benefits received
3. ability to bear cost
allocate indir costs based on Correct Answers indirect cost
rates
approach to ABC for serv based companies Correct Answers
same as with man companies
As the number of units in a batch increases, the batch-level cost
per unit will generally Correct Answers decrease
batch level costs Correct Answers related to group of units
*ex: setup costs
batch level hierarchy Correct Answers related to group of units
or prod/serv (ex: set up costs)
choose weighted av when prices ____ Correct Answers rising
COGS is ____ with weighted av ending inventory Correct
Answers lower
5 steps to decision making Correct Answers *PLANNING*:
1. identify problem and uncertainties
2. obtain information
3. make predictions about the future
4. choose between alternatives
*CONTROL*:
5. implement, evaluate, and learn
ABC in service and merchandising Correct Answers 1. health
care
2. banking
3. telecommunication
4. retailing
5. transportation
ABC valuable for serv based comps bc Correct Answers
majority of costs are indirect
activity based costing Correct Answers calculates costs of
individual activities and assigns costs to cost objects on the basis
of the mix of activities
Activity-based costing can be used by which type of the
following organizations
manufacturing organizations
service organizations
non-profit organizations
all of the above Correct Answers all of the above
, actual costing Correct Answers uses actual rates * actual
activity
adjusted allocation rate approach Correct Answers all
allocations are recalculated with actual rate
allocate costs by: 1, 2, 3 Correct Answers 1. C & E relationship
2. benefits received
3. ability to bear cost
allocate indir costs based on Correct Answers indirect cost
rates
approach to ABC for serv based companies Correct Answers
same as with man companies
As the number of units in a batch increases, the batch-level cost
per unit will generally Correct Answers decrease
batch level costs Correct Answers related to group of units
*ex: setup costs
batch level hierarchy Correct Answers related to group of units
or prod/serv (ex: set up costs)
choose weighted av when prices ____ Correct Answers rising
COGS is ____ with weighted av ending inventory Correct
Answers lower
