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Strayer ACC 350 WK 11 Final Exam

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Question;CC 350 WK 11 Final Exam;1) A top-selling product might actually result in losses for the company. Answer;2) Companies that undercost products will most likely lose market share. Answer;3) If companies increase market share in a given product;line because their reported costs are less than their actual costs, they;will become more profitable in the long run. Answer;4) As product diversity and indirect costs increase, it;is usually best to switch away from an activity based cost system to a;broad averaging system. Answer;5) If a company undercosts one of its products, then it will overcost at least one of its other products. Answer;6) Direct costs plus indirect costs equal total costs. Answer: 7) When refining a costing system, a company should classify as many costs as possible as indirect costs. Answer;8) In a homogeneous cost pool, all costs have a similar cause-and-effect relationship with the cost-allocation base. Answer;9) Indirect labor and distribution costs would most likely be in the same activity-cost pool. Answer;10) Activity-based costing helps identify various activities that explain why costs are incurred. Answer;11) Direct tracing of costs improves cost accuracy. Answer;12) A cost-allocation base is a necessary element when using a strategy that will refine a costing system. Answer;13) An activity-based costing system is necessary for costing services that are similar. Answer: 14) Traditional systems are likely to undercost complex products with lower production volume. Answer;15) For activity-based cost systems, activity costs are;assigned to products in the proportion of the demand they place on;activity resources. Answer;16) Unit-level measures can distort product costing because;the demand for overhead resources may be driven by batch-level or;product-sustaining activities. Answer: 17) Output unit-level costs cannot be determined unless you know how many units are in a given batch. Answer;18) Using multiple unit-level cost drivers generally constitutes an effective activity-based cost system. Answer;19) Misleading cost numbers are larger when;unit-level assignments and the alternative activity-cost-driver;assignments are proportionately similar to each other. Answer: 20) Availability of reliable data and measures should be considered when choosing a cost-allocation base. Answer;21) When designing a costing system, it is easiest to calculate total costs first, and then per-unit costs. Answer;22) ABC systems attempt to trace more costs as direct costs. Answer;23) ABC systems create homogeneous cost pools linked to different activities. Answer;24) ABC systems seek a cost allocation base that has a cause-and-effect relationship with costs in the cost pool. Answer;25) For service organizations, activity-based cost systems may be used to clarify appropriate cost assignments. Answer;26) ABC reveals opportunities for improving the way work is done. Answer;27) Activity-based management refers to the use of information derived from ABC analysis to analyze and improve operations. Answer: 28) Information derived from an ABC analysis might be used to eliminate nonvalue-added activities. Answer: 29) ABC costing systems are primarily for use in manufacturing and marketing and not for design engineering. Answer;30) Department-costing systems are a further refinement of ABC systems. Answer;31) ABC systems are useful in manufacturing, but not in the merchandising or service industries. Answer;32) Costing systems with multiple cost pools are considered ABC systems. Answer;33) Regarding department wide systems, the benefits of an ABC system must be balanced against its costs and limitations. Answer: 34) ABC systems always provide decision-making benefits that exceed implementation costs. Answer;35) The primary costs of an ABC system are the measurements necessary to implement the system. Answer;36) Simply because activity-based costing systems employ;more activity-cost drivers, they provide more accurate product costs;than traditional systems. Answer;More Questions are Included...

 

Paper#39240 | Written in 18-Jul-2015

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