ACC 312 CH 11
The purpose of bill of activities is to provide a list of: A) steps to make a particular product B) ABC terminology for consistent usage C) personnel involved in the activity D) costs included in the activity
A
The relationship between the consumption of an activity and the consumption of a cost driver is: A) the degree of correlation B) reflects the cost of measurement C) a beahvioral effect of cost drivers
A
Traditional product costing systems distort product costs by using: A) a single, volume based cost driver B) multiple cost pools C) activity based cost drivers D) multiple, volume based cost drivers
A
Steps taken during stage 2 of ABC include (SATA): A) computation of pool rate B) computation of total activity cost for each product line C) identification of cost pools D) assignment of costs to appropriate cost pool E) computation of product cost for each product line
A B E
Setup, purchasing, and material handling are examples of ______ level activities: A) facility B) batch C) product sustaining D) Unit
B
With a traditional volume based costing system, there is a tendency to undercost: A) high volume products B) low volume, complex products
B
Labor hour based product costing systems where labor hour is closely related to the factory volume is called (SATA): A) project based costing systems B) volume based costing systems C) job order costing systems D) throughput based costing systems
B D
A complete list of all activities identified and used in the ABC analysis is: A) a bill of activities B) an activity cost driver C) an activity dictionary D) activity costing
C
Costs such as heating and cooling, property taxes, and insurance on the factory are examples of: A) batch level B) unit level C) product sustaining level D) facility level activities
D
Direct labor would not be the best cost driver for a cost related to the purchasing of product raw materials because the purchasing activity is a: A) unit level activity unrelated to direct labor B) two different batch activities C) product sustaining activity and direct labor is a unit level activity D) batch activity and direct labor is a unit level activity
D
The process of speaking with a key employee in a support department to gather info about how time is spent is an example of: A) storyboarding B) document review C) multidisciplinary teams D) interviewing
D
T/F: The total unit product cost is calculated by adding total direct materials and total direct labor costs and dividing by the number of units produced
F
T/F: the cost driver for each activity pool in the ABC system are the same
F
A characteristic of an event or activity that results in the incurrence of costs is a cost _______
driver
Identification of activity cost pools occurs in stage ______ of ABC costing
one
Activities that are necessary to support entire product lines, but are not performed every time a new unit or batch is produced is a _____ ______ level activity
product sustaining
An activity that must be done for each item produced is a ______ ______ activity
unit level
The proportion of an activity consumed by a particular product is called the _______ ________
consumption ratio
The classification of activities into levels is called ______ _______
cost hierarchy
Product costs are most likely to be distorted when using a ______ based product costing system
volume