The Ruling Company assigns plant administration costs to the production departments based on the number of employees. Which of the following would NOT be a good combination of common costs with an activity driver? Multiple Cholce warehouse costs based on the value of materlals stored cafeterla costs based on meals served personnel department costs based on number of employees purchasing department costs based on machine hours

The Ruling Company assigns plant administration costs to the production departments based on the number of employees. Which of the following would NOT be a good combination of common costs with an activity driver? Multiple Cholce warehouse costs based on the value of materlals stored cafeterla costs based on meals served personnel department costs based on number of employees purchasing department costs based on machine hours

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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Nobel Ltd adopts process costing rather than job costing. Which of the following statement could explain why? a. Nobel Ltd produces units according to customer specifications. b. Nobel Ltd wants to track the cost of material, labour and overhead to specific customers. c. Nobel Ltd wants to assign overhead using machine hours as the allocation base. d. Nobel Ltd manufactures virtually identical products using a series of continuous processes.
Which one of the following is not a step in allocating the support department cost to the production department? Select one: a. Trace all the overhead cost b. Divide the departments in to support and producing departments c. Undertake a breakeven analysis d. Divide the company in departments
All of the following are variable costs except for which of the following? Group of answer choices Production supervisor’s salary Sales commission based on number of sales units Direct material costs Direct labor costs
Which of the three methods (Single Plant wide factory overhead rate, Multiple production department rate, and Activity based costing method) for allocating factory overhead cost to products is better?
what is the labor-related activity cost pool per DLH what is the machine-related activity cost pool per MH what is the machine setups activity cost pool per seteup what is the production orders activity cost per order what is the product testing activity cost per test what is the packaging activity cost per package what is the general factory activity cost per DLH
When a company implements activity-based costing, manufacturing overhead cost is often shifted from low volume products to high volume products, with a higher unit cost resulting for the high volume products. Please explain (True or False) thoroughly.
Using ABC product cost information when considering reducing cost, which of the following would not be a way to reduce activity costs? a.Improve operations so that the activity-base usage per unit is eliminated. b.Switch to a plantwide allocation rate. c.Improve operations so that the activity-base usage per unit is reduced. d.Change the classification of employees doing an activity to decrease the activity rate.
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
1 For each of the following costs, identify the cost behavior as variable, mixed, or fixed: 1. Wages of assembly line workers 2. President's salary. 3. Plant utilities, 4. Sales force commissions 5. Shipping costs 6. Factory rent. 7. Research and development expenses 8. Property taxes 9. Advertising. 10. Supplies used in production