ACC 241 Exam 2 ASU Dallmus Questions
and Answers
Question 1
What are the four categories of activity costs in the cost hierarchy?
Correct Answer
1: Unit-Level Activities
2: Batch-Level Activities
3: Product-Level Activities
4: Facility-Level Activities
Question 2
departmental overhead allocation
Correct Answer
this kind of overheard rate increases the accuracy of job costs when each
department incurs different types and amounts of manufacturing overhead and
each product, or job, uses the departments to a different extent
formula: total estimated departmental overhead cost pool/total estimated amount
of the departmental allocation base
Question 3
mixed costs
Correct Answer
-total mixed costs increase as volume increase-total mixed costs can be expressed
as a combination of the variable and fixed cost equations -total mixed cost= total
variable cost + total fixed cost Y= v(x) + f
Page 1 of 14
, Question 4
Internal Failure Costs
Correct Answer
Costs incurred when the company detects and corrects poor-quality goods or
services before making delivery to customers
Question 5
Total Quality Management (TQM)
Correct Answer
A management philosophy of delighting customers with superior products and
services by continually setting higher goals and improving the performance of every
business function.
(Cost of quality categories &
Cost of quality reporting)
Question 6
sales volume
Correct Answer
The number of items or products or services sold by a business over a period of
time.
Question 7
What are value-added activities?
Correct Answer
Activities for which the customer is willing to pay because these activities add value
to the final product
Question 8
Lean Production System
Correct Answer
production system designed for smooth production flows that avoid inefficiencies,
eliminate unnecessary inventories, and continuously improve production processes
Page 2 of 14
and Answers
Question 1
What are the four categories of activity costs in the cost hierarchy?
Correct Answer
1: Unit-Level Activities
2: Batch-Level Activities
3: Product-Level Activities
4: Facility-Level Activities
Question 2
departmental overhead allocation
Correct Answer
this kind of overheard rate increases the accuracy of job costs when each
department incurs different types and amounts of manufacturing overhead and
each product, or job, uses the departments to a different extent
formula: total estimated departmental overhead cost pool/total estimated amount
of the departmental allocation base
Question 3
mixed costs
Correct Answer
-total mixed costs increase as volume increase-total mixed costs can be expressed
as a combination of the variable and fixed cost equations -total mixed cost= total
variable cost + total fixed cost Y= v(x) + f
Page 1 of 14
, Question 4
Internal Failure Costs
Correct Answer
Costs incurred when the company detects and corrects poor-quality goods or
services before making delivery to customers
Question 5
Total Quality Management (TQM)
Correct Answer
A management philosophy of delighting customers with superior products and
services by continually setting higher goals and improving the performance of every
business function.
(Cost of quality categories &
Cost of quality reporting)
Question 6
sales volume
Correct Answer
The number of items or products or services sold by a business over a period of
time.
Question 7
What are value-added activities?
Correct Answer
Activities for which the customer is willing to pay because these activities add value
to the final product
Question 8
Lean Production System
Correct Answer
production system designed for smooth production flows that avoid inefficiencies,
eliminate unnecessary inventories, and continuously improve production processes
Page 2 of 14
