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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#74403 | Written in 18-Jul-2015

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