ACCT 405 Final
Assembling items.
Which of the following is a value-added activity?
Correcting product defects before they are sold.
Which of the following is an example of an internal failure cost?
Correcting product defects before they are sold.
Which of the following is not an example of a prevention cost?
Quality planning and analysis.
Which of the following items is included in almost all quality control systems?
Machinery set-up costs.
Which of the following items would be classified as a batch-related cost in an activity-based cost management (ABCM) system?
Neither of these is false.
Which of the following statements is(are) false? (A) From an organization's viewpoint, transfer prices have no effect on total profits assuming the transfer occurs between two responsibility centers. (B) A transfer price is the value assigned to the transfer of goods or services between divisions within the same organization.
only to the winter customers.
A company has high winter demand and low summer demand for its services. The cost of the unused summer capacity should be allocated
Identify the process objectives that are defined by what the customer wants or expects from the process.
Activity analysis is one of the first stages in implementing activity-based cost management (ABCM). Which of the following steps in activity analysis is usually performed first?
the use of cost information gathered using activity-based costing (ABC).
Activity-based cost management (ABCM) can best be defined as:
Raw materials storage activity.
Barter Company's cost management and product costing procedures follow activity-based costing (ABC) principles. Activities have been identified and classified as being either value-added or nonvalue-added for each product. Which of the following activities, used in Barter's production process, is nonvalue-added? (CPA adapted)
maintain the plant's production capacity
In an activity-based cost management (ABCM) system, facility-related costs are those that are incurred to:
All indirect costs.
The costs above that appear to be allocated rather than traced are:
used
The unused resource capacity is the difference between the resources supplied and the resources:
generation of overall organization profit.
Transfer prices are used for all of the following except:
the market price charged to outside customers, less costs saved by transferring internally.
When the selling division in an internal transfer has unsatisfied demand from outside customers for the product that is being transferred, the lowest acceptable transfer price for the selling division is:
