LS CH7
ABC systems assign nonmanufacturing overhead on a(n) ____-and-_____ basis
cause effect
in the ease of adjustment coding scheme, which of the following are usually considered yellow costs?
- direct labor - factory utilities
Which costs are assigned and/or traced when computing product margin in a traditional cost system? (check all that apply)
- direct materials - direct labor - manufacturing overhead
activity-based costing product costs include. (check all that apply)
- manufacturing costs - non manufacturing costs
In the ease of adjustment coding scheme, which of the following are usually considered Green costs?
- shipping - Direct materials
what manufacturing overhead costs are not assigned to products in activity based costing?
- the costs of organization-sustaining activities - the costs of idle capacity
which of the following costs can be easily traced to individual products.
- warranty repair costs - shipping costs - sales commission
Automation in manufacturing has led to:
-An increase in overhead costs -A decrease in direct labor as a percentage of total cost
The action analysis report:
-Identifies costs that have been assigned to a product - Provides better information for decision making than a traditional cost system - Shows how difficult it would be to adjust costs given changes in activities.
If there are three customer orders containing 10 units each, what is the total number of batches?
3
T/F: Activity-based costing assigns all costs of production to the product, based on volume produced.
False
T/F: activity-based costing assigns all costs of production to the product, based on volume produced
False
In ABC, any event that causes consumption of overhead resources is a(n)____.
activity
In____ - ____ costing, only the capacity used is allocated to product costs
activity based
one reason why activity-based costing is not used for external reporting is because it is very _____ to change a company's accounting system
difficult
calculating activity rates for an action analysis report:
involves more detail than calculating activity rates using traditional abc costing
customer sales minus direct material, direct labor, and overhead cost pools used for each customer equal customer ____.
margin
the best team to create an ABC system should include employees from which department
marketing
Under activity-based costing, nonmanufacturing costs
may be assigned to products on a cause-and effect basis
Activities that occur regardless of which customers are served, which products are produced or how many batches are run or units made are ____-____ activities.
organization-sustaining
Simple counts of the number of times an activity occurs are ____ drivers.
transaction
in the ease of adjustment coding scheme, ____ costs can adjust in response to changes in activity, but require management action.
yellow