ACG 2071 Exam 1 Weisman Questions AND Correct Answers
Activity Based Costing - ✔✔Costing method which
attempts to provide a more accurate assessment of the
cost of products or services provided. Allocates
overhead by activities performed. Produces least
amount of cost distortion
Apply MOH - ✔✔Predetermined Rate/ Actual amount
of allocation base used by job
Apply OH costs for ABC costing - ✔✔Total estimated
activity cost pool amounts/ total estimated activity
allocation base. Activity Rate x Actual Amount of
allocation base used. Add up all costs.
Appraisal Costs - ✔✔Incurred before product reaches
customer. Inspection, testing etc
Average Cost - ✔✔Total costs/ #of units
, Batch Level - ✔✔Performed each time a batch of goods
or materials is handled or processed. Receiving goods,
handling materials.
Controlling Activities - ✔✔Makes sure goals are met.
Monitors and evaluates organizational performance. Ex.
Performance reports which compares budgeted to
actual information.
Conversion Cost - ✔✔Manufacturing Overhead+ Direct
Labor
Cost - ✔✔Use of company resources to provide future
company benefit. Refers to actual cash value.
Cost Driver - ✔✔An activity or factor that causes
overhead costs to be incurred
Cost Object - ✔✔Any item that management wants a
separate measurement of cost
Activity Based Costing - ✔✔Costing method which
attempts to provide a more accurate assessment of the
cost of products or services provided. Allocates
overhead by activities performed. Produces least
amount of cost distortion
Apply MOH - ✔✔Predetermined Rate/ Actual amount
of allocation base used by job
Apply OH costs for ABC costing - ✔✔Total estimated
activity cost pool amounts/ total estimated activity
allocation base. Activity Rate x Actual Amount of
allocation base used. Add up all costs.
Appraisal Costs - ✔✔Incurred before product reaches
customer. Inspection, testing etc
Average Cost - ✔✔Total costs/ #of units
, Batch Level - ✔✔Performed each time a batch of goods
or materials is handled or processed. Receiving goods,
handling materials.
Controlling Activities - ✔✔Makes sure goals are met.
Monitors and evaluates organizational performance. Ex.
Performance reports which compares budgeted to
actual information.
Conversion Cost - ✔✔Manufacturing Overhead+ Direct
Labor
Cost - ✔✔Use of company resources to provide future
company benefit. Refers to actual cash value.
Cost Driver - ✔✔An activity or factor that causes
overhead costs to be incurred
Cost Object - ✔✔Any item that management wants a
separate measurement of cost
