accounting exam 2
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 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?
Batch-level activities are performed each time a batch is produced.
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 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.