Homework Answers
| 5 | Answer | |
| FALSE | Activity based costing is a more accurate allocation of manufacturing overhead than traditional costing. | |
| TRUE | Cost drivers are activities, that drive the cost to be accumulated. | |
| TRUE | Traditional systems use a plant wide manufacturing allocation rate. | |
| FALSE | identifying each activity is the first step under ABC | |
| FALSE | Value engineering includes operational team also not only finance | |
| FALSE | under cost based pricing we must add desired profit not subtract | |
| TRUE | Company has met its target of $ 9. |
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5. Answer True or False for the following: Activity Based Costing...
LOVE UCIUL RR di 0 dation on an expansion strategy? EMENT. 05.15 ACTIVITY-BASED COSTING AND ACTIVITY-BASED...
LOVE UCIUL RR di 0 dation on an expansion strategy? EMENT. 05.15 ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT, AUTOMOTIVE SUPPLIER O'Sullivan Company is an automotive component supp O'Sullivan has been approached by Honda Canada's Alliston, Ontario, plant to conside expanding its production of part 2422 to a total annual quantity of 2,000 units. This part is a low-volume, complex product with a high cross margin that is based on a proposed quoted unit sales price of $7.50. O'Sullivan uses a traditional...
25-15 ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT, AUTOMOTIVE SUPPLIER O'Sullivan Company is an automotive component supplier. O'Sullivan...
25-15 ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT, AUTOMOTIVE SUPPLIER O'Sullivan Company is an automotive component supplier. O'Sullivan has been approached by Honda Canada's Alliston, Ontario, plant to consider expanding its production of part 24Ž2 to a total annual quantity of 2,000 units. This part is a low-volume, complex product with a high gross margin that is based on a proposed (quoted) unit sales price of $7.50. O'Sullivan uses a traditional costing system that allocates indirect manufacturing costs based on direct labour...
Windsor Company uses an activity-based costing system. It has the following manufacturing activity areas, related drivers...
Windsor Company uses an activity-based costing system. It has the following manufacturing activity areas, related drivers used as allocation bases, and cost allocation rates: Cost Allocation Rate $ 40 0.4 Cost Driver Number of setups Number of parts Machine hours Direct labour hours Number of finished units Activity Machine setup Material handling Machining Assembly Inspection During the month, 100 units were produced, requiring 2 setups. Each unit consisted of 21 parts and used 1.4 direct labour hours and 1.25 machine...
Cardinal Manufacturing is switching from a traditional costing system to activity-based costing. Cardinal’s management has just...
Cardinal Manufacturing is switching from a traditional costing system to activity-based costing. Cardinal’s management has just finished identifying the appropriate drivers for each of its seven cost pools. What is management’s next step in putting the ABC system into place? A : Calculating the activity-based overhead rate for each of the different products the firm manufactures. B : Calculating the activity-based overhead rate for each of the seven cost pools. C : Allocating overhead costs to each of the seven...
LIVE UCIUI ing di 10 OD dation on an expansion strategy? CEMENT 05-15 ACTIVITY-BASED COSTING AND...
LIVE UCIUI ing di 10 OD dation on an expansion strategy? CEMENT 05-15 ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT, AUTOMOTIVE SUPPLIER O'Sullivan Company is an automotive component supplie motive component supplier. O'Sullivan has been approached by Honda Canada's Alliston, Ontario, plant to consider expanding its production of part 2422 to a total annual quantity of 2.000 units. This part is a low-volume, complex product with a high gross margin that is based on a proposed (quoted) unit sales price of $7.50....
Which of the following statements is true of activity-based costing?
Which of the following statements is true of activity-based costing?Multiple ChoiceABC ignores the allocation of marketing costs.ABC classifies some indirect costs as direct costs. products.ABC is more likely to result in big differences from a traditional costing system if the business makes only one product rather than multiple products.Activities are the cost objects of the second stage of ABC.Production costs per tennis racket total $ 38, which consists of $ 25 in variable production costs and $ 13 in fixed...
Uhlt 4 Activity Based Costing Question 22 (1 point) Which of the following statements about activity-based...
Uhlt 4 Activity Based Costing Question 22 (1 point) Which of the following statements about activity-based costing is TRUE? It does not affect cost control. It provides less information than traditional cost systems. It provides similar results to traditional costing when different products use resources from different activities in different proportions. Indirect cost allocation bases are unlikely to be cost drivers. It provides similar results to traditional costing when one activity creates a substantial amount of total cost. Question 23...
Activity Based Costing Case Hi-Tek Manufacturing Inc. makes two types of industrial component parts—the B300 and...
Activity Based Costing Case Hi-Tek Manufacturing Inc. makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown below: Hi-Tek Manufacturing Inc. Income Statement Sales ........ Cost of goods sold ................ Gross margin Selling and administrative expenses ...... Net operating loss ............. $2,100,000 1,600,000 500,000 550,000 $ (50,000) Hi-Tek produced and sold 70,000 units of B300 at a price of $20 per unit and 17,500 units of T500...
Case 2 Activity-based Costing (ABC) vs. Time-based Costing Hello company manufactures three products, A, B and...
Case 2 Activity-based Costing (ABC) vs. Time-based Costing Hello company manufactures three products, A, B and C. Forecast data concerning overheads (indirect costs) of the products for the next period as follows 120 Forecast output100 (units) Machine hours per3 unit Number customer orders Number of quality 20 control inspections Number engineering consultancies Areas workshops (m 150 2 of 10 15 25 10 30 of 200 500 300 Cost pools and related cost drivers Cost pool S Machine operating 24,000 Order...
Question 33 2 pts The first step for implementing activity-based costing is Calculate activity rates Assign...
Question 33 2 pts The first step for implementing activity-based costing is Calculate activity rates Assign overhead costs to activity cost pools Define activities, activity cost pools, and activity measures Assign overhead costs to cost objects Question 34 2 pts The differences between ABC and Traditional Product Costs include the following except: Traditional cost systems create a more favorable net operating income (loss) Traditional cost systems allocate manufacturing overhead costs using a volume-related allocation base Traditional cost systems allocate all...
LOVE UCIUL RR di 0 dation on an expansion strategy? EMENT. 05.15 ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT, AUTOMOTIVE SUPPLIER O'Sullivan Company is an automotive component supp O'Sullivan has been approached by Honda Canada's Alliston, Ontario, plant to conside expanding its production of part 2422 to a total annual quantity of 2,000 units. This part is a low-volume, complex product with a high cross margin that is based on a proposed quoted unit sales price of $7.50. O'Sullivan uses a traditional...
25-15 ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT, AUTOMOTIVE SUPPLIER O'Sullivan Company is an automotive component supplier. O'Sullivan has been approached by Honda Canada's Alliston, Ontario, plant to consider expanding its production of part 24Ž2 to a total annual quantity of 2,000 units. This part is a low-volume, complex product with a high gross margin that is based on a proposed (quoted) unit sales price of $7.50. O'Sullivan uses a traditional costing system that allocates indirect manufacturing costs based on direct labour...
Windsor Company uses an activity-based costing system. It has the following manufacturing activity areas, related drivers used as allocation bases, and cost allocation rates: Cost Allocation Rate $ 40 0.4 Cost Driver Number of setups Number of parts Machine hours Direct labour hours Number of finished units Activity Machine setup Material handling Machining Assembly Inspection During the month, 100 units were produced, requiring 2 setups. Each unit consisted of 21 parts and used 1.4 direct labour hours and 1.25 machine...
LIVE UCIUI ing di 10 OD dation on an expansion strategy? CEMENT 05-15 ACTIVITY-BASED COSTING AND ACTIVITY-BASED MANAGEMENT, AUTOMOTIVE SUPPLIER O'Sullivan Company is an automotive component supplie motive component supplier. O'Sullivan has been approached by Honda Canada's Alliston, Ontario, plant to consider expanding its production of part 2422 to a total annual quantity of 2.000 units. This part is a low-volume, complex product with a high gross margin that is based on a proposed (quoted) unit sales price of $7.50....
Which of the following statements is true of activity-based costing?Multiple ChoiceABC ignores the allocation of marketing costs.ABC classifies some indirect costs as direct costs. products.ABC is more likely to result in big differences from a traditional costing system if the business makes only one product rather than multiple products.Activities are the cost objects of the second stage of ABC.Production costs per tennis racket total $ 38, which consists of $ 25 in variable production costs and $ 13 in fixed...
Uhlt 4 Activity Based Costing Question 22 (1 point) Which of the following statements about activity-based costing is TRUE? It does not affect cost control. It provides less information than traditional cost systems. It provides similar results to traditional costing when different products use resources from different activities in different proportions. Indirect cost allocation bases are unlikely to be cost drivers. It provides similar results to traditional costing when one activity creates a substantial amount of total cost. Question 23...
Activity Based Costing Case Hi-Tek Manufacturing Inc. makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown below: Hi-Tek Manufacturing Inc. Income Statement Sales ........ Cost of goods sold ................ Gross margin Selling and administrative expenses ...... Net operating loss ............. $2,100,000 1,600,000 500,000 550,000 $ (50,000) Hi-Tek produced and sold 70,000 units of B300 at a price of $20 per unit and 17,500 units of T500...
Case 2 Activity-based Costing (ABC) vs. Time-based Costing Hello company manufactures three products, A, B and C. Forecast data concerning overheads (indirect costs) of the products for the next period as follows 120 Forecast output100 (units) Machine hours per3 unit Number customer orders Number of quality 20 control inspections Number engineering consultancies Areas workshops (m 150 2 of 10 15 25 10 30 of 200 500 300 Cost pools and related cost drivers Cost pool S Machine operating 24,000 Order...
Question 33 2 pts The first step for implementing activity-based costing is Calculate activity rates Assign overhead costs to activity cost pools Define activities, activity cost pools, and activity measures Assign overhead costs to cost objects Question 34 2 pts The differences between ABC and Traditional Product Costs include the following except: Traditional cost systems create a more favorable net operating income (loss) Traditional cost systems allocate manufacturing overhead costs using a volume-related allocation base Traditional cost systems allocate all...
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