ACC650 (ACC650)

ACC650 Module 3 – Week 3 Quiz Activity-Based Costing 1. Activity-based costing systems: A. Use a single, volume-based cost driver. B. Assign overhead to products based on the products’ relative usage of direct labor. C. Often reveal products that were under- or over-costed by traditional costing systems. D. Typically use fewer cost drivers than more traditional costing systems. E. Have a tendency to distort product costs. 2. Burgeon uses an economic order quantity model and has determined an...

ACC MISC- TEST BANK Chapter 5 Activity-Based Costing and Management True / False Questions 1. Because labor hours are related closely to the volume of activity in the factory, these traditional product-costing systems often are said to be volume-based costing systems. TRUE AACSB: Reflective Thinking AICPA: FN Decision Making AICPA FN: Research Blooms: Analyze Difficulty: 1 Easy Learning Objective: 05-01 Feedback True: Correct! It is true that traditional product-costing systems where labor hours...