Activity based costing: ABC is a system in which various activities are identified. At first, costs of activities are calculated and then such cost is allocated to all the products. Relationship among costs, products and activities, established under this system, helps in the allocation of cost process. An activity rate for each activity cost pool.

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Answer 1

Question

Chapter 4, Problem 9E

1

To determine

Activity based costing:

ABC is a system in which various activities are identified. At first, costs of activities are calculated and then such cost is allocated to all the products. Relationship among costs, products and activities, established under this system, helps in the allocation of cost process.

An activity rate for each activity cost pool.

2

To determine

Activity cost

Activity cost refers to the total cost that is incurred by each activity. This cost is calculated and then assigned to all the products with the use of a cost allocation base or measure.

To calculate:Total activity cost that will be assigned to city general and county general.

3

To determine

Purchasing behavior

Buying or purchasing behavior of the consumer consists of attitude, preferences, dislikes and intentions of the consumers. Organizations that study buying or purchasing behavior of the consumers correctly, generally provide better goods or services and provide more satisfaction to the consumers.

To describe: Purchasing behavior that would increase cost to serve the customers.

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Answer 2

Question

Chapter 4, Problem 9E

1

To determine

Activity based costing:

ABC is a system in which various activities are identified. At first, costs of activities are calculated and then such cost is allocated to all the products. Relationship among costs, products and activities, established under this system, helps in the allocation of cost process.

An activity rate for each activity cost pool.

2

To determine

Activity cost

Activity cost refers to the total cost that is incurred by each activity. This cost is calculated and then assigned to all the products with the use of a cost allocation base or measure.

To calculate:Total activity cost that will be assigned to city general and county general.

3

To determine

Purchasing behavior

Buying or purchasing behavior of the consumer consists of attitude, preferences, dislikes and intentions of the consumers. Organizations that study buying or purchasing behavior of the consumers correctly, generally provide better goods or services and provide more satisfaction to the consumers.

To describe: Purchasing behavior that would increase cost to serve the customers.

Expert Solution & Answer

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Answer 3

Question

Chapter 4, Problem 9E

1

To determine

Activity based costing:

ABC is a system in which various activities are identified. At first, costs of activities are calculated and then such cost is allocated to all the products. Relationship among costs, products and activities, established under this system, helps in the allocation of cost process.

An activity rate for each activity cost pool.

2

To determine

Activity cost

Activity cost refers to the total cost that is incurred by each activity. This cost is calculated and then assigned to all the products with the use of a cost allocation base or measure.

To calculate:Total activity cost that will be assigned to city general and county general.

3

To determine

Purchasing behavior

Buying or purchasing behavior of the consumer consists of attitude, preferences, dislikes and intentions of the consumers. Organizations that study buying or purchasing behavior of the consumers correctly, generally provide better goods or services and provide more satisfaction to the consumers.

To describe: Purchasing behavior that would increase cost to serve the customers.

Expert Solution & Answer

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Answer 4

Question

Chapter 4, Problem 9E

1

To determine

Activity based costing:

ABC is a system in which various activities are identified. At first, costs of activities are calculated and then such cost is allocated to all the products. Relationship among costs, products and activities, established under this system, helps in the allocation of cost process.

An activity rate for each activity cost pool.

2

To determine

Activity cost

Activity cost refers to the total cost that is incurred by each activity. This cost is calculated and then assigned to all the products with the use of a cost allocation base or measure.

To calculate:Total activity cost that will be assigned to city general and county general.

3

To determine

Purchasing behavior

Buying or purchasing behavior of the consumer consists of attitude, preferences, dislikes and intentions of the consumers. Organizations that study buying or purchasing behavior of the consumers correctly, generally provide better goods or services and provide more satisfaction to the consumers.

To describe: Purchasing behavior that would increase cost to serve the customers.

Expert Solution & Answer

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Answer 5

Chapter 4, Problem 9E

1

To determine

Activity based costing:

ABC is a system in which various activities are identified. At first, costs of activities are calculated and then such cost is allocated to all the products. Relationship among costs, products and activities, established under this system, helps in the allocation of cost process.

An activity rate for each activity cost pool.

2

To determine

Activity cost

Activity cost refers to the total cost that is incurred by each activity. This cost is calculated and then assigned to all the products with the use of a cost allocation base or measure.

To calculate:Total activity cost that will be assigned to city general and county general.

3

To determine

Purchasing behavior

Buying or purchasing behavior of the consumer consists of attitude, preferences, dislikes and intentions of the consumers. Organizations that study buying or purchasing behavior of the consumers correctly, generally provide better goods or services and provide more satisfaction to the consumers.

To describe: Purchasing behavior that would increase cost to serve the customers.

Answer 6

Chapter 4, Problem 9E

1

To determine

Activity based costing:

ABC is a system in which various activities are identified. At first, costs of activities are calculated and then such cost is allocated to all the products. Relationship among costs, products and activities, established under this system, helps in the allocation of cost process.

An activity rate for each activity cost pool.

Answer 7

Chapter 4, Problem 9E

1

To determine

Activity based costing:

ABC is a system in which various activities are identified. At first, costs of activities are calculated and then such cost is allocated to all the products. Relationship among costs, products and activities, established under this system, helps in the allocation of cost process.

An activity rate for each activity cost pool.

Answer 8

2

To determine

Activity cost

Activity cost refers to the total cost that is incurred by each activity. This cost is calculated and then assigned to all the products with the use of a cost allocation base or measure.

To calculate:Total activity cost that will be assigned to city general and county general.

Answer 9

2

To determine

Activity cost

Activity cost refers to the total cost that is incurred by each activity. This cost is calculated and then assigned to all the products with the use of a cost allocation base or measure.

To calculate:Total activity cost that will be assigned to city general and county general.

Answer 10

3

To determine

Purchasing behavior

Buying or purchasing behavior of the consumer consists of attitude, preferences, dislikes and intentions of the consumers. Organizations that study buying or purchasing behavior of the consumers correctly, generally provide better goods or services and provide more satisfaction to the consumers.

To describe: Purchasing behavior that would increase cost to serve the customers.

Answer 11

3

To determine

Purchasing behavior

Buying or purchasing behavior of the consumer consists of attitude, preferences, dislikes and intentions of the consumers. Organizations that study buying or purchasing behavior of the consumers correctly, generally provide better goods or services and provide more satisfaction to the consumers.

To describe: Purchasing behavior that would increase cost to serve the customers.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 4 - What are the three common approaches for assigning...Ch. 4 - Why does activity-based costing appeal to some...Ch. 4 - Why do departmental overheadrates something result...Ch. 4 - What are the four hierarchical levels of activity...Ch. 4 - Why activity-based costing is described as a...Ch. 4 - Why do overhead costs often shift from high-volume...Ch. 4 - What are the three major ways in which...Ch. 4 - What are the major limitations of activity-based...Ch. 4 - Prob. 1AE Ch. 4 - Prob. 2AE

Solution Summary: The author describes activity based costing as a system in which various activities are identified and then allocated to all the products.

Concept explainers

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Activity cost

Activity cost refers to the total cost that is incurred by each activity. This cost is calculated and then assigned to all the products with the use of a cost allocation base or measure.

To calculate:Total activity cost that will be assigned to city general and county general.

Want to see the full answer?

Chapter 4 Solutions

Solution Summary: The author describes activity based costing as a system in which various activities are identified and then allocated to all the products.

Concept explainers

Videos

Activity cost Activity cost refers to the total cost that is incurred by each activity. This cost is calculated and then assigned to all the products with the use of a cost allocation base or measure. To calculate:Total activity cost that will be assigned to city general and county general.

Want to see the full answer?

Chapter 4 Solutions

Activity cost

Activity cost refers to the total cost that is incurred by each activity. This cost is calculated and then assigned to all the products with the use of a cost allocation base or measure.

To calculate:Total activity cost that will be assigned to city general and county general.