?Which one of the following is not correct regarding activity-based costing Activity-based costing uses more cost pools than traditional costing a O All manufacturing overhead costs must be allocated to products under activity-based costing b O Activity-based costing may allocate some period costs to cost objects .c O Activity-based costing uses a wider range of activity measures than traditional costing d O ?Which one of the following is correct regarding organization sustaining activities They may be allocated to cost objects depending on the cost object a O They are carried out regardless of the products produced or customers served b O Include only period costs .c O They include activities to each individual unit of the product .d O

?Which one of the following is not correct regarding activity-based costing Activity-based costing uses more cost pools than traditional costing a O All manufacturing overhead costs must be allocated to products under activity-based costing b O Activity-based costing may allocate some period costs to cost objects .c O Activity-based costing uses a wider range of activity measures than traditional costing d O ?Which one of the following is correct regarding organization sustaining activities They may be allocated to cost objects depending on the cost object a O They are carried out regardless of the products produced or customers served b O Include only period costs .c O They include activities to each individual unit of the product .d O

Name: ?Which one of the following is not correct regarding activity-based c
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Description: ?Which one of the following is not correct regarding activity-based costingActivity-based costing uses more cost pools than traditional costing a OAll manufacturing overhead costs must be allocated to products under activity-based costing b OActivit

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
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.
Organizations are motivated to use multiple indirect cost pools instead of a single indirect cost pool when Select one: O a. Multiple Indirect cost pools are needed to conform to external reporting requirements b. manufacturing overhead costs are difficult to control c. the cost drivers for the multiple indirect cost pools are different from the cost driver of the single indirect cost pool d. none of the options
Which of the following conditions would favour the use of activity-based costing (ABC) rather than traditional absorption costing? (1) Overheads represent a large proportion of total cost (2) A diverse product range with complex manufacturing operations (3) Overheads are primarily driven by volume of output O 1, 2 and 3 O 2 only O 1 and 3 only O 1 and 2 only
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.
Cost assignment and cost allocation are used to support and explain the relationship between cost drivers and cost objects in assigning product costs. The relationship of direct materials, direct labor, product, and period cost type are of direct importance. Discuss and provide an example of how cost assignments and cost allocation pertain to one of the costing types. Support your rationale.
Which of the following statements regarding activity-based costing (ABC) is NOT correct? a. Under ABC cost centres are replaced by cost pools b. Blanket overhead recovery rates (OAR) are replaced with cost driver rates c. ABC uses one common overhead recovery rate, such as labour hours. d. ABC tackles the problems of absorption costing by adopting a much more accurate way of charging overhead to cost units.
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.
Which costing method is likely to provide the most accurate product cost? a. Volume-based costing using direct labor hours to allocate overhead b. Volume-based costing using a plantwide overhead rate c. Normal costing using a plantwide overhead rate d. Activity-based costing
Please answer with reason for all why the option is correct and why the other options are incorrectPlease answer correct otherwise skip it 4. Which of the following statements is true? An activity measure in activity-based costing expresses how much of an activity is carried out and it is used as the allocation base for assigning overhead costs to products and services. Activity-based management involves focusing on activities to eliminate waste, decrease processing time, and reduce defects. An activity-based costing system is generally more difficult to set up and run than a traditional cost system. Multiple Choice Statements I and II are true. Statements II and III are true. All of the statements are true. None of the statements are true.