accounting 249 exam 3

Frank Brothers, Inc. has decided to use the amount of time spent preparing its employee payroll as the activity measure for its payroll process cost pool. The activity measure is an example of

A duration driver.

An activity measure is

An allocation base that should "drive" the cost being allocate

In an activity-based costing system, costs in an "Other" cost pool are

Considered period costs and are not allocated to specific product

In an activity-based costing system, direct costs can be

Nonmanufacturing costs such as warranty repair costs if they can be traced directly to individual products

Which of the following would probably be the most accurate measure of activity to use for allocating the cost associated with sending monthly bills to regular customer

Number of bills sent

Meadowpark Enterprises has some raw material that originally cost $86,900. The material has a scrap value of $32,000 as is, but if reworked at a cost of $8,700, it could be sold for $57,800. When deciding to sell the raw material as is or rework the raw material, the $57,800 is a(n

Opportunity cost

Which of the following statements about activity-based costing systems is correct?

Organization-sustaining activities are never included in manufacturing overhead and are reported as period costs.

Which if the following statements is correct concerning the design, implementation, maintenance, and use of an activity-based system?

Cross-functional managers should be involved in the development and implementation of ABC systems because that participation increases their acceptance of the new syste

relevant costs include

Sales, Direct Materials, Direct Labor, Variable Manufacturing overhead costs that *will* change

When choosing between two alternatives, relevant costs are

The costs that differ between the two alternative

what is a reason for a company consider eliminating a division

The division's avoidable fixed costs exceed its contribution margin

costs that are not relevant

sunk costs, non differential costs, costs that will not change

If a segment has a negative segment margin

then it should be eliminated