2 Complete the sentence: Activity-based costing is a technique to improve the reliability of cost assignment ____________. Select one: a. from both direct and indirect cost pools to distinct types of outputs b. to all types of inventory c. from indirect cost pools to distinct types of outputs d. to work-in-process inventory e. from direct cost pools to distinct types of outputs

2 Complete the sentence: Activity-based costing is a technique to improve the reliability of cost assignment ____________. Select one: a. from both direct and indirect cost pools to distinct types of outputs b. to all types of inventory c. from indirect cost pools to distinct types of outputs d. to work-in-process inventory e. from direct cost pools to distinct types of outputs

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 2Q: When is an activity-based costing system better than a traditional allocation system?

See similar textbooks

Similar questions

Which is not a task typically associated with ABC systems? A. calculating the overhead application rate for each cost pool B. applying a single cost rate C. identifying a cost driver D. more correctly allocating overhead costs
ABC costing attempts to: O A. classify as many costs as indirect costs as is feasible. OB. identify the activities involved in a process. create as many cost pools as possible. O C. O D. seek a lesser level of detail.
One
In the blank next to the following terms, place the letter A through D corresponding to the best description of that term. 1. Activity 2. Activity driver 3. Cost pool 4. Cost object A. Measurement associated with an activity. B. A group of costs that have the same activity drivers. C. Anything to which costs will be assigned. D. A task that causes a cost to be incurred.
Activity based Costing enables overhead cost to be ___________assigned to cost objects. a. Over b. Under c. Accurately d. Highly
1..
Which of the following represent the right process order for cost allocation: Select one: O a. Develop the cost allocation formula, calculate the indirect cost rate, then allocate cost to the cost object O b. Develop the cost allocation formula, allocate cost to the cost object, then calculate the indirect cost rate O C. Allocate cost to the cost object, develop the cost allocation formula, then calculate the indirect cost rate O d. Calculate the indirect cost rate, develop the cost allocation formula, then allocate cost to the cost object
1. Discuss the significance of activity based costing(ABC) system in cost management. 2. For purposes of making decisions ,the concept of differential cost and revenue, opportunity cost and sunk cost are vitally important. Briefly explain each cost and its importance to decision making.
Under activity-based costing, second stage allocation would involve: a. Calculating activity rates O b. Assigning costs to cost objects. O c. Assigning costs to cost pools O d. None of the given answers . O e. Defining activity measures
Which of the following is a correct statement? Check only those that are correct. Choose All That Apply Cost tracing is when a cost is attributed directly to a cost object.Cost tracing is when a cost is attributed directly to a cost object. Cost accumulation is the process of gathering cost information about each cost object.Cost accumulation is the process of gathering cost information about each cost object. Cost allocation is when a cost is applied or assigned to a cost object based on a certain factor.Cost allocation is when a cost is applied or assigned to a cost object based on a certain factor. Cost object is anything for which you are trying to gather (accumulate) cost information.
QUESTION 9 Put the following steps in an Activity-Based-Costing system in the proper order. v Calculate a predetermined overhead rate. Identify a logical cost driver as an allocation base for each cost pool. Allocate the costs to the cost object by multiplying the predetermined overhead rate by the actual amount of the cost driver used by the cost object. v Separate total overhead into cost pools.
What is standard cost ? Explain four purposes of standard costing. NB: This concept should be in accouting prefebly in Performance Management Accounting