Activity-based costing usesnumerous cost pools and numerous cost drivers.one plantwide pool and numerous cost drivers.Ⓒone plantwide pool and a single cost driver.O departmental pools and a single cost driver.Save for LaterOi2HC Sunland Company required production for June is 132000 units. To make one unit of finished product, three pounds of direct materialZ are required. Actual beginning and desired ending inventories of direct material Z are 205000 and 235000 pounds, respectively.How many pounds of direct material Z must be purchased?O 408000.O 396000.O 378000.O 426000.Save for LaterO47CAttempts: 0 of 1 used Submit Answer

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Description: Activity-based costing usesnumerous cost pools and numerous cost drivers.one plantwide pool and numerous cost drivers.Ⓒone plantwide pool and a single cost driver.O departmental pools and a single cost driver.Save for LaterOi2HC Sunland Company requ

Direct material purchase budget :— This budget is prepared to estimate the number of units and cost…

Business

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Activity-based costing uses numerous cost pools and numerous cost drivers. one plantwide pool and numerous cost drivers. one plantwide pool and a single cost driver. O departmental pools and a single cost driver. Save for Later

Activity-based costing uses numerous cost pools and numerous cost drivers. one plantwide pool and numerous cost drivers. one plantwide pool and a single cost driver. O departmental pools and a single cost driver. Save for Later

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.
Which of the following statements is true? O The first step in activity-based costing is to assign overhead costs to products using cost drivers ABC usually results in less appropriate management decisions Activity-based costing allocates overhead to multiple activity cost pools and assigns the cost pools to products using cost drivers O Traditional costing systems use multiple predetermined overhead rates
What is the proper order of tasks in an ABC system? a.identify the cost pools, identify the cost drivers, calculate the overhead application rate for each cost pool, assign the costs to the products b.assign the costs to the products, identify the cost drivers, calculate the overhead application rate for each cost pool, identify the cost pools c.identify the cost drivers, identify the cost pools, calculate the overhead application rate for each cost pool, assign the costs to the products d.identify the cost drivers, assign the costs to the products, calculate the overhead application rate for each cost pool, identify the cost pools
The greatest advantage associated with activity-based costing (relative to a traditional allocation with a single allocation base) is that: It allocates all allocation bases based on multiple pools of activities. It uses multiple cost pools. Each cost pool has its own activity measure. It uses multiple cost pools but only a single activity measure to improve the precision of estimates. It uses a single cost pool but multiple allocation bases to improve the precision of estimates.
6. Which of the following statements is true? .Direct labor costs are usually included in the costs that are allocated to activity cost pools in an activity-based costing system. ll. The first stage allocation in a ABC system is the process of assigning overhead costs to activity cost pool. |||. Direct material costs are usually included in the costs in the costs that are allocated to activity cost pools in an activity based costing system
Which of the following is a benefit of activity-based cost management system? a.It makes it easy to identify the overall activities that bear an influence on cost. b.It is inexpensive. c.It enhances strategic planning. d.It ensures allocation of all costs on the basis of machine hours.
Advantages and disadvantages of Activity-Based Costing (ABC), Fixed Overhead Absorption, and Throughput Accounting.
In a two-stage activity-based costing model, stage one involves Select one: O O A. assigning activity costs to cost objects. B. assigning indirect resource costs to activity pools. C. measuring the various indirect resource costs and determining resource drivers. D. assigning direct costs to cost objects.
Activity-based costing can be beneficial in allocating selling and administrative expenses to various products for managerial decision making. Which of the following would be the best allocation base for help desk costs? a. number of sales employees Ob. number of products sold c. number of calls Od. square footage of the help desk office
Which of the following statements is true with regard to activity-based costing? Multiple Cholce Activity-based costing often results in low-volume complex products being undercosted, and high-volume simpler products being overcosted. Activity rates are computed by dividing budgeted activity usage by budgeted activity cost. The basic principle underlying activity-based costing is that activities are what cause overhead cost to be incurred. All cost drivers used to determine the rates will be unit-level drivers. Activity-based costing rates are the same as departmental overhead rates.
Activity-based costing (ABC) is a costing technique that uses a two-stage allocation process. Which of the following statements best describes these two stages? Multiple Choice Direct costs are allocated to the production departments based on a predetermined overhead rate. The costs are assigned to departments, and then to the products based upon their use of activity resources. The costs are assigned to activities, and then to the products based upon their use of the activities. Indirect costs are assigned to activities, and then to the products based upon the direct cost resources used by the activities.
An operations costing system: Multiple Choice O O assigns materials equally to each operation. assigns conversion costs equally to each operation. assigns conversion costs separately to jobs. assigns materials and conversion costs in the same manner.