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

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

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 26E: The ability to assign a cost directly to a cost object by means of a causal relationship is a....

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Similar questions

When is an activity-based costing system better than a traditional allocation system?
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
Activity-based management includes both process value analysis and activity-based costing. Which of the following features is primarily associated with process value analysis? a. Defining root causes of each activity b. Identifying cost objects and activity drivers c. Calculating activity rate d. Assigning costs to cost objects
What are the two main things that an activity-based costing system attempts to accomplish relative to direct and indirect costs?
Identify appropriate cost drivers for these cost pools: A. setup cost pools B. assembly cost pool C. supervising cost pool D. testing cost pool
Explain how a scatter graph is used to identify and measure cost behavior.
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
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.
The first step in applying the activity-based costing method isa. Identifying the cost driversb. Computing a cost rate per cost driverc. Identifying the activities that consume resourcesd. Assigning costs to products
Activity based Costing enables overhead cost to be ___________assigned to cost objects. a. Over b. Under c. Accurately d. Highly
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