KU ACCT 201 Exam 4 Questions with Solved Solutions.

Unit Activity - Answer Activity performed for each individual unit Ex. drilling holes to attach wings/tails to airplane Batch Activity - Answer Activity performed once for a group of products regardless of the number of units in the batch. Ex. Crane Setup Product Activity - Answer Activity performed for entire product line regardless of the number of units or batches. Ex. Product Design Customer Activity - Answer Activity performed for specific customers. Ex. Creating paint template for each logo Organization Activity - Answer Activity performed to keep the business running and enable manufacturing of products. Ex. Renting production facility. Activity Cost Pool Rates Equation - Answer Total activity pool costs/total activity driver volume Allocate costs to products or services equation - Answer activity rate*volume of cost driver used Unit Product Costs Equation - Answer Total costs allocated to product/# of units producted Relevant Information - Answer Pertains to the future and differs between alternatives Avoidable Costs - Answer Costs that can be avoided if you stop a particular activity. Expenses that occur only with the implementation of a particular alternative Sunk Costs - Answer Costs incurred in the past that cannot be changed regardless of future action