Question 1

The cost of recalls would be an example of a(n)____________________.

Accepted Answer

external f

Question 2

Which of the following is not a possible source of customer diversity?

Accepted Answer

A) sales support 
B) order frequency 
C) delivery frequency 
D) geographic distance 
E) Pricing 
A) sales support 
B) order frequency 
C) delivery frequency 
D) geographic distance 
E) Pricing

Question 3

Environmental costs are costs that are incurred because poor environmental quality may or does exists.

Accepted Answer

A) True 
 B)False

Question 4

_________________________ assigns costs to activities and then costs to cost objects.

Accepted Answer

Activity-b

Question 5

In an activity dictionary,types of resources consumed is an example of a(n)

Accepted Answer

A) activity sharing. 
B) quality. 
C) activity attribute. 
D) allocation. 
A) activity sharing. 
B) quality. 
C) activity attribute. 
D) allocation.

Question 6

An activity dictionary lists the activities in an organization along with some critical activity attributes.

Accepted Answer

A) True 
 B)False

Question 7

Complying with the filing requirements of the IRS is an example of a

Accepted Answer

A) recreational activity. 
B) discretionary activity. 
C) recommended activity. 
D) required activity. 
A) recreational activity. 
B) discretionary activity. 
C) recommended activity. 
D) required activity.

Question 8

Nonvalue-added activities

Accepted Answer

A) are unnecessary inputs. 
B) are valued outputs to internal users. 
C) are valued outputs to external users. 
D) help meet the organization's needs,not the product needs. 
A) are unnecessary inputs. 
B) are valued outputs to internal users. 
C) are valued outputs to external users. 
D) help meet the organization's needs,not the product needs.

Question 9

The process of decreasing the time and resources required by an activity is known as

Accepted Answer

A) activity reduction. 
B) activity output measure. 
C) activity attributes. 
D) activity analysis. 
A) activity reduction. 
B) activity output measure. 
C) activity attributes. 
D) activity analysis.

Question 10

Tires Unlimited Corp.produces two types of tires,regular and snow tires.The company uses activity-based costing and has identified two activities and their budgeted costs:
   Molding is based on mixing hours and assembly is based on machine hours.Information regarding each product is as follows:
   Required: 
A.Calculate the activity rate for molding and assembly.Round your answer to two decimal places.
B.Calculate how much total overhead is assigned to each type of tire.
C.Calculate the unit overhead assigned to each type of tire.
D.Assume the company does not use ABC costing.Calculate the plantwide overhead rate,based on machine hours.Round your answer to two decimal places.
E.Calculate the total overhead assigned to each type of tire using the plantwide overhead rate.

Accepted Answer

A. @#IMG-DLM& B. @#IMG-DLM& @#IMG-DLM& C

Question 11

When products consume overhead activities in systematically different proportion due to such things as product size,product complexity,setup time and size of batches this is known as _________________.

Accepted Answer

The answer of When products consume overhead activities in systematically...

Question 12

Inspection time for a plant is 10,000 hours per year.The cost of inspection consists of salaries of four inspectors,totaling $60,000.Inspection also used supplies costing $3 per inspection hour.The company has a close to zero defect state and has eliminated the need for any inspection activity.Calculate the nonvalue-added cost of inspection per year.

Accepted Answer

A) $30,000 
B) $60,000 
C) $90,000 
D) $120,000 
A) $30,000 
B) $60,000 
C) $90,000 
D) $120,000

Question 13

Activity drivers should be classified as either unit-level or nonunit-level.

Accepted Answer

A) True 
 B)False

Question 14

Taylor Corporation produces two models of their leather brief cases: deluxe and standard.The four activities and four drivers are as follows:
   Required: 
A.Calculate the consumption ratios for the four drivers.
B.Calculate the activity rates that would be used to assign costs to each product.Round your answer to two decimal places.
C.Calculate the unit cost assuming that 500 deluxe models were produced and 700 standard models were produced.

Accepted Answer

The answer of Taylor Corporation produces two models of their...

Question 15

Control activities are performed by an organization or its customers in response to poor quality.

Accepted Answer

A) True 
 B)False

Question 16

____ is concerned with identifying the root causes of activity costs.

Accepted Answer

A) Direct analysis 
B) Activity analysis 
C) Driver analysis 
D) Causal analysis 
E) None of these 
A) Direct analysis 
B) Activity analysis 
C) Driver analysis 
D) Causal analysis 
E) None of these

Question 17

Develop a set of at least five interview questions that could be used in the construction of an activity dictionary.Also explain why you would ask each question,i.e.,what information you hope to acquire and how it would apply to the activity dictionary.

Accepted Answer

Answers will vary wi

Question 18

A company has developed a list of quality-related costs as follows:
   The company's controller is pleased with the Year 2 results and commented that the company is now on its way toward total quality.Is the controller right? Explain.

Accepted Answer

A good answer might include the followin

Question 19

Figure 7-3. Hamilton Company manufactures engines.Hamilton produces all the parts necessary for its engines except for one electronic component,which is purchased from two local suppliers: Traynor Inc.and Bello Company.Both suppliers are reliable and rarely deliver late; however,Traynor sells the component for $10.00 per unit and Bello sells the same component for $8.95.Hamilton purchases 70 percent of its components from Bello,because of the lower price.The total annual demand is 75,000 units.
    Refer to Figure 7-3.Calculate the total activity cost per component associated with using Traynor Inc.,as the supplier.

Accepted Answer

A) $15.75 
B) $10.00 
C) $19.38 
D) $20.00 
E) $22.80 
A) $15.75 
B) $10.00 
C) $19.38 
D) $20.00 
E) $22.80

Question 20

Figure 7-7.
Armstrong Company produces a variety of bicycles.One of its plants produces two bicycles: a mountain model and a racing model.At the beginning of the year,the following data were prepared for this plant:
   In addition,the following information was provided so that overhead costs could be assigned to each product:
   Refer to Figure 7-7.

Accepted Answer

The answer of Figure 7-7.
Armstrong Company produces a variety of...

The cost of recalls would be an example of a(n)____________________.

Which of the following is not a possible source of customer diversity?

Environmental costs are costs that are incurred because poor environmental quality may or does exists.

_________________________ assigns costs to activities and then costs to cost objects.

In an activity dictionary,types of resources consumed is an example of a(n)

An activity dictionary lists the activities in an organization along with some critical activity attributes.

Complying with the filing requirements of the IRS is an example of a

Nonvalue-added activities

The process of decreasing the time and resources required by an activity is known as

When products consume overhead activities in systematically different proportion due to such things as product size,product complexity,setup time and size of batches this is known as _________________.

Activity drivers should be classified as either unit-level or nonunit-level.

Control activities are performed by an organization or its customers in response to poor quality.

____ is concerned with identifying the root causes of activity costs.

Develop a set of at least five interview questions that could be used in the construction of an activity dictionary.Also explain why you would ask each question,i.e.,what information you hope to acquire and how it would apply to the activity dictionary.

A company has developed a list of quality-related costs as follows: The company's controller is pleased with the Year 2 results and commented that the company is now on its way toward total quality.Is the controller right? Explain.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Absorption and Variable Costing,and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 7: Activity-Based Costing and Management

The cost of recalls would be an example of a(n)____________________.

Which of the following is not a possible source of customer diversity?

Environmental costs are costs that are incurred because poor environmental quality may or does exists.

_________________________ assigns costs to activities and then costs to cost objects.

In an activity dictionary,types of resources consumed is an example of a(n)

An activity dictionary lists the activities in an organization along with some critical activity attributes.

Complying with the filing requirements of the IRS is an example of a

Nonvalue-added activities

The process of decreasing the time and resources required by an activity is known as

When products consume overhead activities in systematically different proportion due to such things as product size,product complexity,setup time and size of batches this is known as _________________.

Activity drivers should be classified as either unit-level or nonunit-level.

Control activities are performed by an organization or its customers in response to poor quality.

____ is concerned with identifying the root causes of activity costs.

Develop a set of at least five interview questions that could be used in the construction of an activity dictionary.Also explain why you would ask each question,i.e.,what information you hope to acquire and how it would apply to the activity dictionary.

A company has developed a list of quality-related costs as follows: The company's controller is pleased with the Year 2 results and commented that the company is now on its way toward total quality.Is the controller right? Explain.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Absorption and Variable Costing,and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters