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