5. ABC differs from traditional product costing in which of the following ways?a. Overhead is allocated to products in ABCb. Estimated costs are usedc.) Diverse cost drivers are usedd. It is completely accurate0.002

A single, volume-based cost driver, such as direct labour hours or machine hours, is used in…

Answered: 5. ABC differs from traditional product…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 11MC: Which is not a task typically associated with ABC systems? A. calculating the overhead application...

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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
Choose one correct answer by writing down the question number and the letter representing the answer next to it. e.g 1.b1.Direct Costs are costs that:a. are traceable to a productb. are classified as product costs c. are also regarded as prime costsd. All of the above are correct
ABC systems Select one a. will limit cost drivers to units of output O b.comply with CAAP c highlight the different levels of activities O d will allocate costs based on volume
Which of the following statements is true? * A. The traditional approach to costing uses many different cost drivers. B. Costs that are indirect to products are by definition traceable to directly to products. C. Costs that are indirect to products are traceable to some activity. D. All of the above statements are true.
3.Activity based costing (ABC) is a method of allocating the indirect costs of sales commissions to products. A. true b. false
The following statements are correct excerpt?A. Different costs are used for different purposesB. Costing systems vary depending on the level of sophistication for cost assignmentC. Both direct and indirect costs are exclusively traced to cost object in the same wayD. Cost allocation occurs when quantity of resources consumed by a particular cost object cannot be directly measured
?Which of the following is not a step involved in activity-based costing Assign costs to products by multiplying the cost driver rate by the volume of cost driver units consumed by a O .the product .Determine how to reduce the costs of making products by cutting activities .b O Identify the activities that consume resources and assign costs to those activities c O .Compute a cost rate per cost driver unit or transaction .d O
[S1] A cost is either direct or indirect. The classification changes if the costs object changes. [S2] Manufacturing overhead is an indirect cost with respect to units of product. a. both are trueb. both are falsec. S1 is trued. S2 is true
Consider the following statements concerning activity-based costing. 1. Cost pools are linked to particular cost centres. 2. Total costs in a cost pool are charged to output using the relevant cost driver. Which of these statements is/are correct? A. 1 and 2 B. 2 only O C. 1 only D. Neither 1 nor 2
Which of the following are considered to be benefits of activity-based costing (ABC)? 1. More accurate product costs 2. Reduced complexity of calculating costs 3. Inclusion of non-manufacturing costs 4. More detailed understanding of what drives cost. a. 1, 3 and 4 b. 2, 3 and 4 c. 1, 2 and 3 d. 1, 2 and 4
A costing approach in which all manufacturing costs are product costs." This statement best describe. a. Normal Costing O b. Variable Costing C. Absorption Costing d. Actual Costing
Under variable costing, which of the following are costs that can be inventoried Select one: O O a. variable manufacturing overhead b. fixed selling and administrative expense c. variable selling and administrative expense d. fixed manufacturing overhead

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5. ABC differs from traditional product costing in which of the following ways? a. Overhead is allocated to products in ABC b. Estimated costs are used Diverse cost drivers are used a. It is completely accurate 000,032