?Which of the following is not a step involved in activity-based costingAssign 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 OIdentify 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

Explanation: Activity based costing is a costing technique where production is split into different…

Answered: Which of the following is not a step st…

Which of the following is not a step st driver rate by the volume of cost w to reduce the costs of making proc es that consume resources and assigr

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 12MC: Which statement is correct? A. Activity-based cost systems are less costly than traditional cost...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

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?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

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Which statement is correct? A. Activity-based cost systems are less costly than traditional cost systems. B. Activity-based cost systems are easier to implement than traditional cost systems. C. Activity-based cost systems are more accurate than traditional cost systems. D. Activity-based cost systems provide the same data as traditional cost systems.
For which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard cost
Which is not a step in analyzing the cost driver for manufacturing overhead? A. Identify the cost B. identify non-value-added costs C. analyze the effect on manufacturing overhead D. identify the correlation between the potential driver and manufacturing overhead
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
In the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs C. total costs D. units of production
Describe how total variable costs and unit variable costs behave with changes in the level of activity
Explain why service companies use different activity bases than manufacturing companies to classify costs as fixed or variable.
Why would standard cost be a more appropriate transfer cost between cost centers than actual cost?
Which of the following is a reason a company would implement activity-based costing? A. The cost of record keeping is high. B. The additional data obtained through traditional allocation are not worth the cost. C. They want to improve the data on which decisions are made. D. A company only has one cost driver.
Which of the following graphs best illustrates fixed costs per unit as the activity base changes?
From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences: a. A product, sales territory, department, or activity to which costs are traced is called a (direct cost, cost object). b. Advertising costs are usually viewed as (period, product) costs. c. Factory overhead costs combined with direct labor costs are called (prime, conversion) costs. d. Feedback is often used to (improve, direct) operations. e. A sacrifice made to obtain some benefit is a (cost, expense). f. The balance sheet of a manufacturer would include an account for (cost of goods sold, work in process inventory). g. The implementation of automatic, robotic factory equipment normally (increases, decreases) the direct labor component of product costs.
Which of the following is not a step involved in activity-based costing? Select one O a Compute a cost rate per cost driver unit or transaction. O bidentify the activities that consume resources and assign costs to those activities -O CAssign costs to products by multiplying the cost driver rate by the volume of cost driver units consumed by the product o d Determine how to reduce the costs of making products by cutting activities