- Study guides, Class notes & Summaries

Chapter 18 Activity Based Costing Exam Questions and answer

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2 pages

Written in 2023/2024

Grade A+

biggdreamer

Chapter 9 - Activity-Based Costing (ABC) Exam Questions with Correct Answers Can Plant-Wide Allocation be used in both..... - Answer-Manufacturing & Non-Manufacturing Organizations What account is credited when applying overhead to products? - Answer-Applied Manufacturing Overhead What account is debited when applying overhead to products? - Answer-Work-In-Process Companies using a single plant-wide rate generally use an allocation base related to what? What are some examples? - A...

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6 pages

Written in 2023/2024

Grade A+

biggdreamer

Accounting CH 6 Activity- Based Costing Exam Questions with Correct Answers

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2 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

Activity Based Costing Exam Questions and Answers Benefit of ABC (Activity-Based Costing) - Answer-The primary ______ is more accurate product costing because: 1) ABC leads to more cost pools being used to assign costs to products. 2) ABC leads to enhanced control over overhead costs. 3) ABC leads to better management decisions. Limitations of ABC (Activity-Based Costing) - Answer-Although ABC systems often provide better product cost data than traditional volume-based systems,...

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6 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

Activity Based Costing Exam Questions with 100% Correct Answers

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2 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

Activity Based Costing Exam Questions with Complete Solutions

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4 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

Activity Based Costing Exam Questions with Correct Answers Examples of non-value added activities in a service company: - Answer-Taking appointments, reception, bookkeeping, billing, traveling, ordering supplies, advertising, cleaning, and computer repair. Companies often use ________ to help identify the ABC activities. - Answer-Activity flowcharts. What are some type of UNIT LEVEL activities? - Answer-Machine related: Drilling, cutting, milling, trimming, and pressing. Labor related...

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3 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

Activity-Based Costing- A Tool To Aid Decision-Making Exam Questions and Answers the activity rate for customer orders activity pool is $20. What does this mean? - Answer-an average customer order consumes resources that cost 20 dollars Second-stage allocation - Answer-The process by which activity rates are used to apply costs to products and customers in an ABC system OH costs applied= activity rates * activity amount -this is done for each cost pool the 2 most common management...

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7 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

Activity-Based Costing Exam Questions and Answers What is the cost hierarchy for activities? - Answer-1. Organization-sustaining activities 2. Facility-sustaining activities 3. Customer-sustaining activities 4. Product-sustaining activities 5. Batch-level activities 6. Unit-level activities What is the process used to assign costs in an ABC system? - Answer-1. Identify the relevant cost object. 2. Identify activities. 3. Assign (trace and allocate) costs to activity-based cost pools...

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8 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

Activity-Based Costing Exam Questions with Correct Answers

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3 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

Activity-based costing exam questions with verified answers What is a plantwide overhead rate? - Answer-- single overhead rate - used throughout the entire factory and that the allocation base was direct labour-hours or machine hours What is the problems with the plantwide overhead rate? - Answer-- can result in distorted unit product costs when it is used for decision making processes Why is a plantwide overhead rate based on direct labour no longer satisfying? - Answer-- may no long...

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15 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

Chapter 4: Activity-Based Costing Exam Questions with Complete Solutions Latest objective of ABC of service - Answer-identify the key activities that generate costs & to keep track of how mnay of those activities are completed for each service performed (same as a manufacture objective) - general approach to identify activities, cost pools, & cost derived are the same - value-added & non-value-added activies are the same Allocates overhead using a predetermined rate - Answer-How do tradi...

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8 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

Chapter 3: Activity-Based Costing Questions and Answers Benefits of ABC - Answer-Increases number of cost pools used to accumulate OH costs. Activity cost pools are more homogeneous than departmental cost pools. Assigning OH costs using activity measures that cause those costs, rather than relying only on dLH. Used when costs don't seem "right" - ex: selling a lot but profit is decreasing. Limitations of ABC - Answer-Complex - many steps, identify different activities. Always have to...

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4 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

Chapter 4 - Activity- Based Costing (ABC) Exam Questions and Answers Factors for use of ABC - Answer-1. Product lines differ greatly in volume and manufacturing complexity. 2. Product lines are numerous and diverse, requiring various degrees of support services. 3. Overhead costs constitute a significant portion of total costs. 4. The manufacturing process or the number of products has changed significantly, for example, from labor-intensive to capital-intensive due to automation. 5.Produ...

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3 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

Chapter 7 Activity Based Costing Exam Questions with Correct Answers What are Duration Drivers? - Answer-Duration Drivers measure the amount of time required to perfrom an activity such as the time spent preparing individual bills for customers What is the most accurate driver in terms of resource consumption - Answer-Duration drivers are the most accurate measure for resource consumption but they take more effort to record Why are transaction drivers used in practice if duration driv...

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6 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

Chapter 9 - Activity-Based Costing (ABC) Exam Questions with Correct Answers Examples of Volume Related Costs - Answer-Supplies, Lubricating Oil, Machine Repair Examples of Batch Related Costs - Answer-Setup Costs, Material Handling, Shipping Costs Examples of Product Related Costs - Answer-Compliance Costs, Design and Specification Costs Examples of Facility Related Costs - Answer-General Plant Costs, Plant Administration Costs Cost Hierarchy - Answer-Classification of cost drive...

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6 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

Chapter 17 Active-Based Costing Practice MC Exam Questions with Correct Answers

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3 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

Chapter 18 Activity Based Costing Exam Questions and answer

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2 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

Cost Accounting: Activity Based Costing Exam Questions with 100% Correct Answers Why practical capacity is preferred over actual capacity - Answer-- does not hide the cost of idle capacity within product costs - gives a truer cost of activities used to produce the product ABC Implementation Issues - Answer-- After switching to ABC, may only find that 10% - 15% of products are profitable - Mirrors the complexity of the organization

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3 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

EXAM #2: Activity-Based Costing Exam Questions with Correct Answers

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2 pages

Written in 2023/2024

Grade A+

STUDYGUIDESET

Accounting CH 6 Activity- Based Costing Exam Questions with Correct Answers 2 Exam (elaborations) Activity Based Costing Exam Questions and Answers 3 Exam (elaborations) Activity Based Costing Exam Questions with 100% Correct Answers 4 Exam (elaborations) Activity Based Costing Exam Questions with Complete Solutions 5 Exam (elaborations) Activi

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17 items

biggdreamer

Accounting CH 6 Activity- Based Costing Exam Questions with Correct Answers Example of facility level costing - Answer-Rent on a factory building, are occurred to sustain the overall manufacturing processes and do not vary with the number or type of products produced. What does ABC stand for - Answer-Activity Based Costing Activity-Based Costing - Answer-A system of allocating overhead cost that assume that activities, not volume of productions, cause overhead to be incurred. Activit...

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2 pages

Written in 2023/2024

Grade A+

biggdreamer