Activity Based Costing: Method of recognizing activities in the organization and allotment of cost of each activity thereto is known as activity based costing. To explain: In comparison to traditional cost system and when there are batch level or product level costs, an activity based costing system shifts costs.

Question

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Answer 1

Question

Chapter 17, Problem 1MCQ

To determine

Activity Based Costing:

Method of recognizing activities in the organization and allotment of cost of each activity thereto is known as activity based costing.

To explain: In comparison to traditional cost system and when there are batch level or product level costs, an activity based costing system shifts costs.

Expert Solution & Answer

Explanation of Solution

b.

Usually activity based costing system shifts costs from high volume to low volume products due to usage of product level or batch level.

Hence, option b is correct.

a.

cost gets shifted low volume to high volume products in traditional methods due to usage of direct labor hours or machine hours.

c.

Shifting of cost from standardized to specialized products under activity based costing is not taken into accounts due to less usage of it.

d.

Activity based costing system does not facilitates specialized to standardized products due to non emphasizing on it, rather this considers product level.

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Students have asked these similar questions

Gemini Store has operated with a 30% average gross profit ratio for a number of years. It had $112,000 in sales during the second quarter of this year. If it began the quarter with $19,200 of inventory at cost and purchased $73,200 of inventory during the quarter, what is its estimated ending inventory by the gross profit method

What is the amount allocated to ending inventory?

Solve the problem

Answer 2

Question

Chapter 17, Problem 1MCQ

To determine

Activity Based Costing:

Method of recognizing activities in the organization and allotment of cost of each activity thereto is known as activity based costing.

To explain: In comparison to traditional cost system and when there are batch level or product level costs, an activity based costing system shifts costs.

Expert Solution & Answer

Explanation of Solution

b.

Usually activity based costing system shifts costs from high volume to low volume products due to usage of product level or batch level.

Hence, option b is correct.

a.

cost gets shifted low volume to high volume products in traditional methods due to usage of direct labor hours or machine hours.

c.

Shifting of cost from standardized to specialized products under activity based costing is not taken into accounts due to less usage of it.

d.

Activity based costing system does not facilitates specialized to standardized products due to non emphasizing on it, rather this considers product level.

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Answer 3

Question

Chapter 17, Problem 1MCQ

To determine

Activity Based Costing:

Method of recognizing activities in the organization and allotment of cost of each activity thereto is known as activity based costing.

To explain: In comparison to traditional cost system and when there are batch level or product level costs, an activity based costing system shifts costs.

Expert Solution & Answer

Explanation of Solution

b.

Usually activity based costing system shifts costs from high volume to low volume products due to usage of product level or batch level.

Hence, option b is correct.

a.

cost gets shifted low volume to high volume products in traditional methods due to usage of direct labor hours or machine hours.

c.

Shifting of cost from standardized to specialized products under activity based costing is not taken into accounts due to less usage of it.

d.

Activity based costing system does not facilitates specialized to standardized products due to non emphasizing on it, rather this considers product level.

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Answer 4

Question

Chapter 17, Problem 1MCQ

To determine

Activity Based Costing:

Method of recognizing activities in the organization and allotment of cost of each activity thereto is known as activity based costing.

To explain: In comparison to traditional cost system and when there are batch level or product level costs, an activity based costing system shifts costs.

Expert Solution & Answer

Explanation of Solution

b.

Usually activity based costing system shifts costs from high volume to low volume products due to usage of product level or batch level.

Hence, option b is correct.

a.

cost gets shifted low volume to high volume products in traditional methods due to usage of direct labor hours or machine hours.

c.

Shifting of cost from standardized to specialized products under activity based costing is not taken into accounts due to less usage of it.

d.

Activity based costing system does not facilitates specialized to standardized products due to non emphasizing on it, rather this considers product level.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 17, Problem 1MCQ

To determine

Activity Based Costing:

Method of recognizing activities in the organization and allotment of cost of each activity thereto is known as activity based costing.

To explain: In comparison to traditional cost system and when there are batch level or product level costs, an activity based costing system shifts costs.

Expert Solution & Answer

Explanation of Solution

b.

Usually activity based costing system shifts costs from high volume to low volume products due to usage of product level or batch level.

Hence, option b is correct.

a.

cost gets shifted low volume to high volume products in traditional methods due to usage of direct labor hours or machine hours.

c.

Shifting of cost from standardized to specialized products under activity based costing is not taken into accounts due to less usage of it.

d.

Activity based costing system does not facilitates specialized to standardized products due to non emphasizing on it, rather this considers product level.

Answer 6

Chapter 17, Problem 1MCQ

To determine

Activity Based Costing:

Method of recognizing activities in the organization and allotment of cost of each activity thereto is known as activity based costing.

To explain: In comparison to traditional cost system and when there are batch level or product level costs, an activity based costing system shifts costs.

Expert Solution & Answer

Explanation of Solution

b.

Usually activity based costing system shifts costs from high volume to low volume products due to usage of product level or batch level.

Hence, option b is correct.

a.

cost gets shifted low volume to high volume products in traditional methods due to usage of direct labor hours or machine hours.

c.

Shifting of cost from standardized to specialized products under activity based costing is not taken into accounts due to less usage of it.

d.

Activity based costing system does not facilitates specialized to standardized products due to non emphasizing on it, rather this considers product level.

Answer 7

Chapter 17, Problem 1MCQ

To determine

Activity Based Costing:

Method of recognizing activities in the organization and allotment of cost of each activity thereto is known as activity based costing.

To explain: In comparison to traditional cost system and when there are batch level or product level costs, an activity based costing system shifts costs.

Answer 8

Expert Solution & Answer

Explanation of Solution

b.

Usually activity based costing system shifts costs from high volume to low volume products due to usage of product level or batch level.

Hence, option b is correct.

a.

cost gets shifted low volume to high volume products in traditional methods due to usage of direct labor hours or machine hours.

c.

Shifting of cost from standardized to specialized products under activity based costing is not taken into accounts due to less usage of it.

d.

Activity based costing system does not facilitates specialized to standardized products due to non emphasizing on it, rather this considers product level.