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Question;Question;1. 1. (TCO 1) Production-cost cross-subsidization results from (Points;3);allocating;indirect costs to multiple products.;assigning traced costs to each product.;assigning;costs to different products using varied costing systems within the same;organization.;assigning;broadly averaged costs across multiple products without recognizing amounts of;resources used by which products.;Question 1. 1. (TCO 1) Production-cost cross-subsidization results;from (Points: 3);allocating;indirect costs to multiple products.;Question 2. 2. (TCO 1) Building or plant security is an example of (Points;3);unit-level;costs.;batch-level;costs.;product-sustaining;costs.;facility-sustaining;costs.;Question;3. 3. (TCO 1) Evaluating customer reaction of the trade-off of giving;up some features of a product for a lower price would best fit which category;of management decisions under activity-based management? (Points: 3);Pricing;and product-mix decisions;Cost;reduction decisions;Design;decisions;Discretionary decisions;Question;4. 4. (TCO 1) Overcosting of a product is MOST likely to result from (Points;3);misallocating;direct labor costs;overpricing;the product;undercosting;another product.;understating;total product costs;Question;5. 5. (TCO 1) The MOST likely example of a batch-level cost is (Points;3);utility;costs;machine;repairs.;product-designing;costs.;setup;costs.;Question;6. 6. (TCO 1) Which method of allocation probably best estimates;actual overhead costs used? Why? (Points: 3);Single;direct labor-hours cost driver because it is best to allocate total costs;uniformly to individual jobs.;Single;direct labor-hours cost driver because it is easiest to analyze and interpret.;Three;activity-cost drivers because they best reflect the relative consumption of;resources.;Three;activity-cost drivers because product costs can be significantly;cross-subsidized.;Question 7. 7. (TCO 1) Activity-based management (ABM) includes;decisions about all EXCEPT (Points: 3);pricing;and product mix.;smoothing;costs.;reducing;costs.;improving processes;Question;8. 8. (TCO 1) Activity-based costing information (Points: 3);should;be used when services place similar demands on resources;usually;results in peanut-butter costing;will;yield inaccurate cost numbers when products are similar;may;assist in improving product design and efficiency.;Question;9. 9. (TCO 1) Products make diverse demands on resources because of;differences in all of the following EXCEPT (Points: 3);volume;selling;price.;batch;size.;complexity;Question;10. 10. (TCO 1) Dalrymple Company produces a special spray nozzle.;The budgeted indirect total cost of inserting the spray nozzle is $80,000. The;budgeted number of nozzles to be inserted is 40,000. What is the budgeted;indirect cost allocation rate for this activity? (Points: 3);$0.50;$1.00;$1.50;$2.00


Paper#37621 | Written in 18-Jul-2015

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