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| 1 | |
Which of the following is described as a system that assigns costs to products on the basis or a single activity base related to volume? |
| | A) | Transaction-based costing system |
| | B) | Volume-based costing system |
| | C) | Activity-based costing system |
| | D) | All of the above |
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| 2 | |
A traditional product-costing system, in which a single cost driver is used to assign overhead costs to products, is often referred to as which of the following? |
| | A) | Activity-based costing system |
| | B) | Through-put costing system |
| | C) | Volume-based costing system |
| | D) | Either (B) or (C) |
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| 3 | |
Stage one of an activity-based costing (ABC) system involves which of the following? |
| | A) | Identifying cost drivers |
| | B) | Computing pool rates |
| | C) | Identifying activity cost pools |
| | D) | Both A and B |
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| 4 | |
Which of the following activities may support all the organization's processes? |
| | A) | Batch-level activities |
| | B) | Product-sustaining activities |
| | C) | Facility-level activities |
| | D) | Unit-level activities |
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| 5 | |
Which activities may be described as manufacturing services or activities that affect multiple units of output equally? |
| | A) | Batch-level activities |
| | B) | Unit-level activities |
| | C) | Facility-level activities |
| | D) | Product-sustaining activities |
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| 6 | |
Which of the following activities is directly traceable to a product? |
| | A) | Batch-level activities |
| | B) | Unit-level activities |
| | C) | Facility-level activities |
| | D) | Product-sustaining activities |
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| 7 | |
The activities that transform resources into individual products and services are called which of the following? |
| | A) | Batch-level activities. |
| | B) | Unit-level activities. |
| | C) | Facility-level activities. |
| | D) | Product-sustaining activities. |
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| 8 | |
Which of the following is a product-sustaining-level activity? |
| | A) | An activity that must be done for each unit of product. |
| | B) | An activity needed to support an entire product line. |
| | C) | An activity required for the entire production process to occur. |
| | D) | All the activities are product-sustaining level activities. |
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| 9 | |
Which is the proper order of ABC calculations during the completion of stage two of an ABC system when there are diverse product lines? |
| | A) | (1) Compute the pool rate, (2) compute total activity cost for each product line, and (3) compute product cost per unit for each product line. |
| | B) | (1) Compute total activity cost for each product line, (2) compute the pool rate, and (3) compute product cost per unit for each product line. |
| | C) | (1) Compute product cost per unit for each product line, (2) compute the pool rate, and (3) compute total activity cost for each product line, |
| | D) | (1) Compute product cost per unit for each product line, (2) compute total activity cost for each product line, and (3) compute the pool rate. |
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| 10 | |
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Determine the pool rate for the shaping-related activity. |
| | A) | $3.00 |
| | B) | $3.24 |
| | C) | $1.56 |
| | D) | Cannot be determined from the information provided |
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| 11 | |
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The pool rate for the shaping-related activity is $3.00 per unit of cost driver. Determine the total activity cost for Dishes. |
| | A) | $81,000 |
| | B) | $75,000 |
| | C) | $6,000 |
| | D) | Cannot be determined from the information provided |
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| 12 | |
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The pool rate for the shaping-related activity is $2.50 per unit of cost driver. Determine the activity cost per unit for Cups. |
| | A) | $3.00 |
| | B) | $7.50 |
| | C) | $6.00 |
| | D) | $5.00 |
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The pool rate for the shaping-related activity is $3.00 per unit of cost driver. Determine the activity cost per unit for Bowls. |
| | A) | $3.00 |
| | B) | $9.00 |
| | C) | $4.50 |
| | D) | $6.00 |
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| 14 | |
Which of the following will undermine the ability of volume-based product-costing systems to assign overhead accurately? |
| | A) | The consumption ratios are similar between activities. |
| | B) | There is a large proportion of non-unit-level overhead costs. |
| | C) | There are widely varying consumption ratios between products. |
| | D) | Both B and C. |
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| 15 | |
Stage two of an activity-based costing (ABC) system involves which of the following? |
| | A) | Identifying cost drivers |
| | B) | Computing pool rates |
| | C) | Identifying activity cost pools |
| | D) | Both A and B |
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| 16 | |
Which of the following should be considered when choosing the proper cost-driver bases? |
| | A) | Cause and effect relationship between the activity and the cost |
| | B) | Cost-benefit trade offs |
| | C) | Behavioral effects |
| | D) | All of the above |
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| 17 | |
A procedure used to develop a detailed process flowchart, which visually represents activities and the relationship among the activities is known as which of the following? |
| | A) | Activity-based costing system |
| | B) | Throughput costing system |
| | C) | Storyboarding |
| | D) | Compiling an activity dictionary |
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| 18 | |
Which is at complete listing of activities identified and used in ABC analysis? |
| | A) | Bill of activities |
| | B) | Activity dictionary |
| | C) | Storyboarding |
| | D) | Paper trail |
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| 19 | |
Which of the following is true about activity-based costing? |
| | A) | It is not feasible for service industry companies. |
| | B) | An effort is made to account for as many costs as possible as direct costs of production. |
| | C) | It is simplified through the use of a single, volume-based cost driver. |
| | D) | It is often called throughput costing. |
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| 20 | |
Which of the following can signal the need for a new costing system? |
| | A) | Product-line profit margins are difficult to explain. |
| | B) | Sales are increasing, but profits are decreasing. |
| | C) | Overhead costs are very high, and increasing over time. |
| | D) | All of the above |
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| 21 | |
Which of the following is an indicator that can signal the need for a new costing system? |
| | A) | Line managers suggest an apparently profitable product be dropped. |
| | B) | Product lines are diverse. |
| | C) | Product-line profit margins are difficult to explain. |
| | D) | All of the above. |
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| 22 | |
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Determine the pool rate for physician-time related activity. |
| | A) | $4.60 |
| | B) | $5.00 |
| | C) | $59.14 |
| | D) | $12.35 |
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| 23 | |
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The pool rate for the physician-time activity is $4.60 per patient minute (the cost driver). Determine the total activity cost for Routine Visits. |
| | A) | $276,000 |
| | B) | $360,000 |
| | C) | $184,000 |
| | D) | $526,909 |
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| 24 | |
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The pool rate for the physician-time activity is $4.60 per unit per patient minute (the cost driver). Determine the activity cost per unit for Extended Visits. |
| | A) | $40.00 |
| | B) | $46.00 |
| | C) | $92.00 |
| | D) | $51.43 |
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