Exam 2 Cost accounting
Question sand Answers
Updated 2026
TheBmajorBlimitationBofBvolume-basedBcostingBsystemsBisBtheBuseBofBvolume-based:
Criteria.
Standards.
Rates.
Correct
Variances.
Restrictions.B-BAnswerBRates
Volume-basedBratesBproduceBinaccurateBproductBcostBwhen:
MultipleBChoice
ABlargeBportionBofBfactoryBoverheadBcostBisBnotBvolume-based.
FirmsBproduceBaBdiverseBmixBofBproducts.
LargeBvolumesBofBaBproductBareBmanufactured.
BothBaBlackBofBvolume-basedBoverheadBandBthereBisBaBlargeBrangeBofBproducts.
NoneBofBtheseBAnswerBchoicesBareBcorrect.B-BAnswerBBothBaBlackBofBvolume-
basedBoverheadBandBthereBisBaBlargeBrangeBofBproducts.
WhichBofBtheBfollowingBdescribesBaBcostBdriver?
MultipleBChoice
ABfactorBthatBcausesBorBrelatesBtoBaBchangeBinBtheBtotalBcostBofBanBactivity.
ABcostingBapproachBthatBassignsBresourceBcostsBtoBcostBobjectsBbasedBonBactivitiesBp
erformedBforBtheBcostBobjects.
,ABmeasureBofBtheBfrequencyBandBintensityBofBdemandBplacedBonBaBresourceBbyBanB
activity.
ABmeasureBofBtheBdemandBplacedBonBtheBresourcesBbyBproducts,Bservices,BorBcusto
mers.
AnBactivityBperformedBforBeachBunitBofBtheBcostBobject.B-
BAnswerBABfactorBthatBcausesBorBrelatesBtoBaBchangeBinBtheBtotalBcostBofBanBactivit
y.
WhichBofBtheBfollowingBisBnotBaBlevelBthatBaBfirmBclassifiesBitsBactivitiesBat?
MultipleBChoice
unit-level
corporate-level
batchBlevel
product-level
facility-levelB-BAnswerBcorporate-level
TheBmanagementBofBactivitiesBtoBimproveBtheBvalueBreceivedBbyBtheBcustomerBandBt
heBcompetitivenessBofBtheBorganizationBis:
MultipleBChoice
CostBdriverBanalysis.
CustomerBprofitabilityBanalysis.
Activity-basedBmanagement.
PerformanceBmeasurement.
ActivityBanalysis.B-BAnswerBActivity-basedBmanagement.
WhichBofBtheBfollowingBactivitiesBisBaBfacility-levelBactivity?
, MultipleBChoice
PlantBmanagementBsalaries.
DepreciationBonBaBhighlyBspecializedBpieceBofBproductionBequipment.
DirectBlabor.
ProductBdesign.
MaterialsBhandling.B-BAnswerBPlantBmanagementBsalaries.
ABvolume-basedBrateBisBanBappropriateBoverheadBapplicationBbaseBwhen:
MultipleBChoice
SeveralBwell-differentiatedBproductsBareBmanufactured.
DirectBlaborBcostsBareBlarge.
DirectBmaterialBcostsBareBlargeBrelativeBtoBdirectBlaborBcostsBincurred.
OnlyBoneBproductBisBmanufactured.
ManufacturingBisBprocess-based.B-BAnswerBOnlyBoneBproductBisBmanufactured.
EngineeringBchangeBorders,BmaintenanceBofBequipmentBusedBinBmanufacturing,BandBp
roductBdesignBcostsBareBexamplesBof:
MultipleBChoice
UnitBcosts.
BatchBcosts.
Product-levelBcosts.
Facility-levelBcosts.
Unit,Bbatch,BandBcustomer-sustainingBcosts,Brespectively.B-BAnswerBProduct-levelBcosts.
InBanBactivity-basedBcostingBsystem,BoverheadBcostsBareBdividedBintoBseparate:
Question sand Answers
Updated 2026
TheBmajorBlimitationBofBvolume-basedBcostingBsystemsBisBtheBuseBofBvolume-based:
Criteria.
Standards.
Rates.
Correct
Variances.
Restrictions.B-BAnswerBRates
Volume-basedBratesBproduceBinaccurateBproductBcostBwhen:
MultipleBChoice
ABlargeBportionBofBfactoryBoverheadBcostBisBnotBvolume-based.
FirmsBproduceBaBdiverseBmixBofBproducts.
LargeBvolumesBofBaBproductBareBmanufactured.
BothBaBlackBofBvolume-basedBoverheadBandBthereBisBaBlargeBrangeBofBproducts.
NoneBofBtheseBAnswerBchoicesBareBcorrect.B-BAnswerBBothBaBlackBofBvolume-
basedBoverheadBandBthereBisBaBlargeBrangeBofBproducts.
WhichBofBtheBfollowingBdescribesBaBcostBdriver?
MultipleBChoice
ABfactorBthatBcausesBorBrelatesBtoBaBchangeBinBtheBtotalBcostBofBanBactivity.
ABcostingBapproachBthatBassignsBresourceBcostsBtoBcostBobjectsBbasedBonBactivitiesBp
erformedBforBtheBcostBobjects.
,ABmeasureBofBtheBfrequencyBandBintensityBofBdemandBplacedBonBaBresourceBbyBanB
activity.
ABmeasureBofBtheBdemandBplacedBonBtheBresourcesBbyBproducts,Bservices,BorBcusto
mers.
AnBactivityBperformedBforBeachBunitBofBtheBcostBobject.B-
BAnswerBABfactorBthatBcausesBorBrelatesBtoBaBchangeBinBtheBtotalBcostBofBanBactivit
y.
WhichBofBtheBfollowingBisBnotBaBlevelBthatBaBfirmBclassifiesBitsBactivitiesBat?
MultipleBChoice
unit-level
corporate-level
batchBlevel
product-level
facility-levelB-BAnswerBcorporate-level
TheBmanagementBofBactivitiesBtoBimproveBtheBvalueBreceivedBbyBtheBcustomerBandBt
heBcompetitivenessBofBtheBorganizationBis:
MultipleBChoice
CostBdriverBanalysis.
CustomerBprofitabilityBanalysis.
Activity-basedBmanagement.
PerformanceBmeasurement.
ActivityBanalysis.B-BAnswerBActivity-basedBmanagement.
WhichBofBtheBfollowingBactivitiesBisBaBfacility-levelBactivity?
, MultipleBChoice
PlantBmanagementBsalaries.
DepreciationBonBaBhighlyBspecializedBpieceBofBproductionBequipment.
DirectBlabor.
ProductBdesign.
MaterialsBhandling.B-BAnswerBPlantBmanagementBsalaries.
ABvolume-basedBrateBisBanBappropriateBoverheadBapplicationBbaseBwhen:
MultipleBChoice
SeveralBwell-differentiatedBproductsBareBmanufactured.
DirectBlaborBcostsBareBlarge.
DirectBmaterialBcostsBareBlargeBrelativeBtoBdirectBlaborBcostsBincurred.
OnlyBoneBproductBisBmanufactured.
ManufacturingBisBprocess-based.B-BAnswerBOnlyBoneBproductBisBmanufactured.
EngineeringBchangeBorders,BmaintenanceBofBequipmentBusedBinBmanufacturing,BandBp
roductBdesignBcostsBareBexamplesBof:
MultipleBChoice
UnitBcosts.
BatchBcosts.
Product-levelBcosts.
Facility-levelBcosts.
Unit,Bbatch,BandBcustomer-sustainingBcosts,Brespectively.B-BAnswerBProduct-levelBcosts.
InBanBactivity-basedBcostingBsystem,BoverheadBcostsBareBdividedBintoBseparate: