Question 1

A non-value-added activity in a service enterprise is

Accepted Answer

A) providing legal research. 
B) delivering packages. 
C) consulting. 
D) bookkeeping. 
A) providing legal research. 
B) delivering packages. 
C) consulting. 
D) bookkeeping.

Question 2

Which of the following is a non-value-added activity?

Accepted Answer

A) Engineering design 
B) Machining 
C) Inspection 
D) Packaging 
A) Engineering design 
B) Machining 
C) Inspection 
D) Packaging

Question 3

To assign overhead costs to each product, the company

Accepted Answer

A) multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product. 
B) multiplies the overhead rate by the number of direct labor hours used on each product. 
C) assigns the cost of each activity cost pool in total to one product line. 
D) multiplies the rate of cost drivers per estimated cost for the cost pool by the estimated cost for each cost pool. 
A) multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product. 
B) multiplies the overhead rate by the number of direct labor hours used on each product. 
C) assigns the cost of each activity cost pool in total to one product line. 
D) multiplies the rate of cost drivers per estimated cost for the cost pool by the estimated cost for each cost pool.

Question 4

An "Ordering and Receiving Materials" cost pool would most likely have as a cost driver:

Accepted Answer

A) machine hours. 
B) number of setups. 
C) number of purchase orders. 
D) number of inspection tests. 
A) machine hours. 
B) number of setups. 
C) number of purchase orders. 
D) number of inspection tests.

Question 5

What sometimes makes implementation of activity-based costing difficult in service industries is that a smaller proportion of overhead costs are company-wide costs.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a batch-level activity?

Accepted Answer

A) Assembling 
B) Product design 
C) Engineering changes 
D) Purchase ordering 
A) Assembling 
B) Product design 
C) Engineering changes 
D) Purchase ordering

Question 7

Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso's total overhead costs consist of assembly costs and inspection costs. The following information is available: $\begin{array}{cccc}\text { Cost }& \text {Titanium }& \text {Aluminum }& \text { total Cost }\
\hline \text { Assembly } & 500 \text { mach. hours } & 500 \text { mach. hours } & \$ 60,000 \
\text { Inspections } & 350 & 150 & \$ 100,000 \
& 2,100 \text { labor hours } & 1,900 \text { labor hours } &
\end{array}$ Reynoso is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much assembly cost is assigned to titanium racquets?

Accepted Answer

A) $21,000. 
B) $30,000. 
C) $31,500. 
D) $42,000. 
A) $21,000. 
B) $30,000. 
C) $31,500. 
D) $42,000.

A non-value-added activity in a service enterprise is

Which of the following is a non-value-added activity?

To assign overhead costs to each product, the company

An "Ordering and Receiving Materials" cost pool would most likely have as a cost driver:

What sometimes makes implementation of activity-based costing difficult in service industries is that a smaller proportion of overhead costs are company-wide costs.

Which of the following is a batch-level activity?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters

Exam 16: Activity-Based Costing

A non-value-added activity in a service enterprise is

Which of the following is a non-value-added activity?

To assign overhead costs to each product, the company

An "Ordering and Receiving Materials" cost pool would most likely have as a cost driver:

What sometimes makes implementation of activity-based costing difficult in service industries is that a smaller proportion of overhead costs are company-wide costs.

Which of the following is a batch-level activity?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters