Name of Activity or Account Classificatlon by Activity level Acquiring material . Batch Inspecting incoming materials Batch Moving materials . Batch Planning production Batch Processing special orders Batch Processing supplier invoices Batch Receiving material. Batch Scheduling production Batch Inspecting production processes Batch Processing purchase orders Building occupancy Batch Facility Depreciation Facility General management Facility Facility Maintaining facilities Managing the environment Facility Assuring quality Product Sustaining Expediting Product Sustaining Maintaining tools and dies Maintaining/improving production processes Product Sustaining Product Sustaining Product Sustaining Product Sustaining Managing human resources Managing waste disposal Processing payroll Product Sustaining Processing production information Product Sustaining Providing product cost Product Sustaining Setting manufacturing methods Product Sustaining Supervising production. Product Sustaining Sustaining accounting Maintaining production equipment Product Sustaining Product Sustaining Direct-labor allowances Unit Direct-labor fringes Unit Utilities (equipment) Unit Overtime (hourly) Unit Rework. Unit Shift differential Unit Spoilage Unit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

United Technologies Corporation implemented activity-based costing in two of its subsidiaries: Otis Elevator Company and Carrier Corporation. The following table shows 27 activities and eight accounts identified at Carrier, along with the classification determined by the ABC project team.12

Required: Choose two activities or accounts from each of the four classifications and explain why you agree or disagree with the ABC project team’s classification.

Name of Activity or Account
Classificatlon by Activity level
Acquiring material .
Batch
Inspecting incoming materials
Batch
Moving materials .
Batch
Planning production
Batch
Processing special orders
Batch
Processing supplier invoices
Batch
Receiving material.
Batch
Scheduling production
Batch
Inspecting production processes
Batch
Processing purchase orders
Building occupancy
Batch
Facility
Depreciation
Facility
General management
Facility
Facility
Maintaining facilities
Managing the environment
Facility
Assuring quality
Product Sustaining
Expediting
Product Sustaining
Maintaining tools and dies
Maintaining/improving production processes
Product Sustaining
Product Sustaining
Product Sustaining
Product Sustaining
Managing human resources
Managing waste disposal
Processing payroll
Product Sustaining
Processing production information
Product Sustaining
Providing product cost
Product Sustaining
Setting manufacturing methods
Product Sustaining
Supervising production.
Product Sustaining
Sustaining accounting
Maintaining production equipment
Product Sustaining
Product Sustaining
Direct-labor allowances
Unit
Direct-labor fringes
Unit
Utilities (equipment)
Unit
Overtime (hourly)
Unit
Rework.
Unit
Shift differential
Unit
Spoilage
Unit
Transcribed Image Text:Name of Activity or Account Classificatlon by Activity level Acquiring material . Batch Inspecting incoming materials Batch Moving materials . Batch Planning production Batch Processing special orders Batch Processing supplier invoices Batch Receiving material. Batch Scheduling production Batch Inspecting production processes Batch Processing purchase orders Building occupancy Batch Facility Depreciation Facility General management Facility Facility Maintaining facilities Managing the environment Facility Assuring quality Product Sustaining Expediting Product Sustaining Maintaining tools and dies Maintaining/improving production processes Product Sustaining Product Sustaining Product Sustaining Product Sustaining Managing human resources Managing waste disposal Processing payroll Product Sustaining Processing production information Product Sustaining Providing product cost Product Sustaining Setting manufacturing methods Product Sustaining Supervising production. Product Sustaining Sustaining accounting Maintaining production equipment Product Sustaining Product Sustaining Direct-labor allowances Unit Direct-labor fringes Unit Utilities (equipment) Unit Overtime (hourly) Unit Rework. Unit Shift differential Unit Spoilage Unit
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Value Chain Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education