accounting exam 2
When making volume trade-off decisions managers should focus on which of the following?
Contribution margin per unit of the constraining resource
Which of the following does not describe a difference between activity-based costing (ABC) and traditional absorption costing?
ABC usually excludes manufacturing overhead from its calculations whereas traditional absorption costing includes it.
Which of the following statements is true?
Traditional cost systems usually overcost high volume products and undercost low volume products when compared to activity-based costing systems.
Which of the following statements is true?
Second-stage allocation assigns activity costs to products or customers.
Which of the following statements is true?
Unit-level activities are performed each time a unit is produced.
Which of the following is an example of a product-level activity?
advertising products
An activity is:
an event that causes the consumption of overhead resources.
Avoidable costs are always:
relevant costs.
Which of the following statements is true?
Batch-level activities are performed each time a batch is produced.
Which of the following statements about using a plantwide overhead rate based on direct labor is correct?
It is often overly simplistic and incorrect to assume that direct labor-hours is a company's only manufacturing overhead cost driver.
Which of the following is an example of a batch-level activity?
Setting up machines
Which of the following statements is true?
Which of the following statements is true?
Sunk costs
a cost that has already been incurred and that cannot be recovered
Opportunity costs are always:
relevant costs.
