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
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
