Question 1

Which of the following process dimensions of the activity-based management model deals with "why"?

Accepted Answer

A)  resources 
B)  driver analysis 
C)  activities 
D)  performance measures 
A)  resources 
B)  driver analysis 
C)  activities 
D)  performance measures

Question 2

The process that focuses on non-value-added activities is called:

Accepted Answer

A)  Activity sharing 
B)  Activity reduction 
C)  Activity selection 
D)  Activity elimination 
A)  Activity sharing 
B)  Activity reduction 
C)  Activity selection 
D)  Activity elimination

Question 3

The process which refers to the adoption of new processes to meet strategic objectives is called:

Accepted Answer

A)  Process creation 
B)  Process innovation 
C)  Process improvement 
D)  Process efficiency 
A)  Process creation 
B)  Process innovation 
C)  Process improvement 
D)  Process efficiency

Question 4

Which of the following is NOT an objective of responsibility accounting?

Accepted Answer

A)  to redesign processes to be more effective 
B)  to align individual and organizational goals 
C)  to influence behavior 
D)  to increase profitability 
A)  to redesign processes to be more effective 
B)  to align individual and organizational goals 
C)  to influence behavior 
D)  to increase profitability

Question 5

For non-value-added activities that are unnecessary, the standard quantity is

Accepted Answer

A)  one. 
B)  zero. 
C)  actual quantity minus standard price. 
D)  actual quantity plus standard price. 
A)  one. 
B)  zero. 
C)  actual quantity minus standard price. 
D)  actual quantity plus standard price.

Question 6

Which of the following is NOT part of the cost dimension of the activity-based management model?

Accepted Answer

A)  resources 
B)  driver analysis 
C)  activities 
D)  cost objects 
A)  resources 
B)  driver analysis 
C)  activities 
D)  cost objects

Question 7

The resources consumed by the activity in producing its output are called __________ .

Accepted Answer

The answer of The resources consumed by the activity in...

Question 8

Value-added costs equal standard quantity times

Accepted Answer

A)  non-value-added costs. 
B)  currently attainable standards. 
C)  standard price. 
D)  actual price. 
A)  non-value-added costs. 
B)  currently attainable standards. 
C)  standard price. 
D)  actual price.

Question 9

A firm's warranty costs are $375,000 per year. A competitor's warranty costs are $175,000 per year. The value-added costs are

Accepted Answer

A)  $225,000. 
B)  $75,000. 
C)  $150,000. 
D)  $-0-. 
A)  $225,000. 
B)  $75,000. 
C)  $150,000. 
D)  $-0-.

Question 10

A technique for improving performance of activities and processes that predicts activity costs as activity output changes is called

Accepted Answer

A)  value-added reporting. 
B)  activity flexible budgeting. 
C)  Kaizen costing. 
D)  benchmarking. 
A)  value-added reporting. 
B)  activity flexible budgeting. 
C)  Kaizen costing. 
D)  benchmarking.

Question 11

The capacity variance is composed of the unused capacity variance and

Accepted Answer

A)  the activity volume variance. 
B)  the used capacity variance. 
C)  the activity benchmark. 
D)  the value-added standard. 
A)  the activity volume variance. 
B)  the used capacity variance. 
C)  the activity benchmark. 
D)  the value-added standard.

Question 12

The responsibility accounting system that focuses on organizational units such as departments and plants is called __________ responsibility.

Accepted Answer

The answer of The responsibility accounting system that focuses on...

Question 13

Under what conditions would the activity capacity used be zero?

Accepted Answer

A)  If the activity is value-added. 
B)  If the activity is non-value-added. 
C)  If the activity is discretionary. 
D)  It would never be set at zero. 
A)  If the activity is value-added. 
B)  If the activity is non-value-added. 
C)  If the activity is discretionary. 
D)  It would never be set at zero.

Question 14

A firm's warranty costs are $375,000 per year. A competitor's warranty costs are $175,000 per year. The non-value-added costs are

Accepted Answer

A)  $-0-. 
B)  $375,000. 
C)  $200,000. 
D)  $75,000. 
A)  $-0-. 
B)  $375,000. 
C)  $200,000. 
D)  $75,000.

Question 15

A well accepted approach for reducing costs by eliminating waste is called __________ costing.

Accepted Answer

The answer of A well accepted approach for reducing costs...

Question 16

A time-and-motion study revealed that it should take 3 hours to produce a product that currently takes 7 hours to produce. Labor is $9 per hour. The non-value-added costs are

Accepted Answer

A)  $56. 
B)  $24. 
C)  $36. 
D)  $-0-. 
A)  $56. 
B)  $24. 
C)  $36. 
D)  $-0-.

Question 17

Hogwarts Company has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows:
  The actual prices paid per unit of each activity driver were equal to the standard prices. The non-value-added costs for labor are

Accepted Answer

A)  $198,000. 
B)  $34,000. 
C)  $42,000. 
D)  $31,000. 
A)  $198,000. 
B)  $34,000. 
C)  $42,000. 
D)  $31,000.

Question 18

Process improvement refers to incremental and erratic increases in the efficiency of an existing process.

Accepted Answer

A) True 
 B)False

Question 19

Bandolero Corporation has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows:   The actual prices paid per unit of each activity driver were equal to the standard prices. The value-added costs for labor are

Accepted Answer

A)  $792,000. 
B)  $900,000. 
C)  $84,000. 
D)  $75,000. 
A)  $792,000. 
B)  $900,000. 
C)  $84,000. 
D)  $75,000.

Question 20

Process improvement can be defined as

Accepted Answer

A)  The performance of a process to achieve major improvements. 
B)  The adoption of new processes to meet strategic objectives. 
C)  The incremental or continual increases in the efficiency of a process. 
D)  The expression of performance measures in financial terms. 
A)  The performance of a process to achieve major improvements. 
B)  The adoption of new processes to meet strategic objectives. 
C)  The incremental or continual increases in the efficiency of a process. 
D)  The expression of performance measures in financial terms.

Which of the following process dimensions of the activity-based management model deals with "why"?

The process that focuses on non-value-added activities is called:

The process which refers to the adoption of new processes to meet strategic objectives is called:

Which of the following is NOT an objective of responsibility accounting?

For non-value-added activities that are unnecessary, the standard quantity is

Which of the following is NOT part of the cost dimension of the activity-based management model?

The resources consumed by the activity in producing its output are called __________ .

Value-added costs equal standard quantity times

A firm's warranty costs are $375,000 per year. A competitor's warranty costs are $175,000 per year. The value-added costs are

A technique for improving performance of activities and processes that predicts activity costs as activity output changes is called

The capacity variance is composed of the unused capacity variance and

The responsibility accounting system that focuses on organizational units such as departments and plants is called __________ responsibility.

Under what conditions would the activity capacity used be zero?

A firm's warranty costs are $375,000 per year. A competitor's warranty costs are $175,000 per year. The non-value-added costs are

A well accepted approach for reducing costs by eliminating waste is called __________ costing.

A time-and-motion study revealed that it should take 3 hours to produce a product that currently takes 7 hours to produce. Labor is $9 per hour. The non-value-added costs are

Hogwarts Company has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. The non-value-added costs for labor are

Process improvement refers to incremental and erratic increases in the efficiency of an existing process.

Bandolero Corporation has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. The value-added costs for labor are

Process improvement can be defined as

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 12: Activity-Based Management

Which of the following process dimensions of the activity-based management model deals with "why"?

The process that focuses on non-value-added activities is called:

The process which refers to the adoption of new processes to meet strategic objectives is called:

Which of the following is NOT an objective of responsibility accounting?

For non-value-added activities that are unnecessary, the standard quantity is

Which of the following is NOT part of the cost dimension of the activity-based management model?

The resources consumed by the activity in producing its output are called __________ .

Value-added costs equal standard quantity times

A firm's warranty costs are $375,000 per year. A competitor's warranty costs are $175,000 per year. The value-added costs are

A technique for improving performance of activities and processes that predicts activity costs as activity output changes is called

The capacity variance is composed of the unused capacity variance and

The responsibility accounting system that focuses on organizational units such as departments and plants is called __________ responsibility.

Under what conditions would the activity capacity used be zero?

A firm's warranty costs are $375,000 per year. A competitor's warranty costs are $175,000 per year. The non-value-added costs are

A well accepted approach for reducing costs by eliminating waste is called __________ costing.

A time-and-motion study revealed that it should take 3 hours to produce a product that currently takes 7 hours to produce. Labor is $9 per hour. The non-value-added costs are

Hogwarts Company has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. The non-value-added costs for labor are

Process improvement refers to incremental and erratic increases in the efficiency of an existing process.

Bandolero Corporation has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. The value-added costs for labor are

Process improvement can be defined as

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters