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What is the biggest disadvantage of ABC?

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Question 1;What is the biggest disadvantage of ABC?;a. It does not provide costing information needed for GAAP purposes.;b. It causes management to make frivolous decisions.;c. It often causes managers to argue about the best activity measure.;d. It is expensive.;Question 2;In performing a vertical analysis, the base for sales revenues on the income statement is;a. net sales.;b. sales.;c. net income.;d. cost of goods available for sale.;Question 3;Rigsby Company had no beginning work in process. During the period, 5,000 units were completed, and there were 500 units of ending work in process. How many units were started in production?;a. 5,500;b. 5,000;c. 4,500;d. 500;Question 4;Kaiser Inc. uses job order costing for its brand new line of homework machines. The cost incurred for production during 2006 totaled $6,000 of materials and $5,000 of conversion costs. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totaled $5,000, and the ending balance is $3,000. During the year, the company completed 40 machines. How much is the cost per machine?;a. $275;b. $400;c. $225;d. $325;Question 5;Which of the following is a limitation of activity-based costing?;a. Can only be used with process costing;b. Managers realize that the nature of each product determines its profitability;c. Some arbitrary allocations continue;d. It increases product costs;Question 6;A process with no beginning work in process, completed and transferred out 10,000 units during a period and had 5,000 units in the ending work in process that were 50% complete. How much is equivalent units of production for the period for conversion costs?;a. 12,500 equivalent units;b. 15,000 equivalent units;c. 17,500 equivalent units;d. 7,500 equivalent units;Question 7;SO-3 The master budget is a set of interrelated budgets that constitutes a plan of action for a specified time period.;a. True;b. False

 

Paper#27757 | Written in 18-Jul-2015

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