Homework Answers
Answer- 12)-The following statement is correct- Activity-based cost systems are more accurate than traditional cost systems.
Explanation-The Activity-based cost systems are more complex and more costly to implement than traditional cost systems. Traditional cost systems are simple and easier to implement than activity-based cost systems. Activity-based cost systems are more accurate than traditional cost systems because they provide more precise segregation of indirect costs.
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QUESTION 12 Which statement is correct? A. Activity-based cost systems are less costly than traditional cost...
Explanation not necessary Active Frame, Inc., manufactures clear and tinted sport glasses. The manufacturing of clear...
Explanation not necessary Active Frame, Inc., manufactures clear and tinted sport glasses. The manufacturing of clear glasses takes 45,000 direct labor hours and involves 1 700 parts and 115 inspections. The manufacturing of tinted glasses takes 115,000 direct labor hours and involves 1,400 parts and 450 inspections. The traditional method applies $560,000 of overhead on the basis of direct labor hours. What is the amount of overhead per direct labor hour applied to the clear glass products? A $933.33 B....
nts) 16. Eaton Company uses activity-based costing to allocate overhead costs to products. When figuring the...
nts) 16. Eaton Company uses activity-based costing to allocate overhead costs to products. When figuring the cost of ordering raw materials, which of the following is likely the best cost driver for this activity? a. Number of orders placed. b. Weight of the parts ordered. c. Square footage of the purchasing department area. d. Direct labor cost e. None of the answer choices is correct. e comfc future for safet materia local h e factor ta rela 17. Which of...
9. Which of the following statements is true? a. Activity-based costing uses a number of activity...
9. Which of the following statements is true? a. Activity-based costing uses a number of activity cost pools, each of which is allocated to products on the basis of direct labor-hours. b. Activity rates in activity-based costing are computed by dividing costs from the first stage allocations by the activity measure for each activity cost pool. C. An activity-based costing system is generally easier to implement and maintain than traditional costing system. d. One of the goals of activity-based costing...
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...
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...
Select the incorrect statement regarding the use of cost drivers in activity based costing systems. Multiple...
Select the incorrect statement regarding the use of cost drivers in activity based costing systems. Multiple Choice O ABC uses volume-based and activity based cost drivers. 0 Volume based drivers are most appropriate for costs that are affected by the number of units produced 0 ABC's use of multiple cost drivers will produce less accurate unit costs when a company produces many different products that require different types and levels of overhead costs. 0 An arbitrary cost driver must be...
What are the key reasons for product cost differences between traditional costing systems and Activity-Based Costing...
What are the key reasons for product cost differences between traditional costing systems and Activity-Based Costing ABC systems?
The cost of raising capital with debt is typically less costly for a firm than raising...
The cost of raising capital with debt is typically less costly for a firm than raising capital with preferred stock. Which one of the following is one of the reasons for this? Preferred stocks are more senior than bonds. Interest is a tax-deductible cost, preferred dividends are not. Bonds generally have a longer maturity than preferred stocks. The interest from bonds is compounded more frequently than the dividends from preferred stocks.
Which of the following statements about activity based costing is not correct? Select one: a. A...
Which of the following statements about activity based costing is not correct? Select one: a. A disadvantage of activity based costing is the cost needed to implement the system b. Activity based costing is good to use when products differ in age. c. Activity based costing is efficient to implement when there is not a large difference in volumes of each product produced. d. An advantage of activity based costing is the increased accuracy in pricing.
Which of the following statements about adolescent sexual activity is correct? A. Less than 1/3 of...
Which of the following statements about adolescent sexual activity is correct? A. Less than 1/3 of sexually active children report using condoms in their most recent sexual activity. B. Of the students using contraception, more use the birth control pill than use condoms. C. Teens who are involved in sports or after-school activities have lower rates of sexual activity than teens who do not participate in such activities. D. Among girls, those who are sexually active are less likely to...
Explanation not necessary Active Frame, Inc., manufactures clear and tinted sport glasses. The manufacturing of clear glasses takes 45,000 direct labor hours and involves 1 700 parts and 115 inspections. The manufacturing of tinted glasses takes 115,000 direct labor hours and involves 1,400 parts and 450 inspections. The traditional method applies $560,000 of overhead on the basis of direct labor hours. What is the amount of overhead per direct labor hour applied to the clear glass products? A $933.33 B....
nts) 16. Eaton Company uses activity-based costing to allocate overhead costs to products. When figuring the cost of ordering raw materials, which of the following is likely the best cost driver for this activity? a. Number of orders placed. b. Weight of the parts ordered. c. Square footage of the purchasing department area. d. Direct labor cost e. None of the answer choices is correct. e comfc future for safet materia local h e factor ta rela 17. Which of...
9. Which of the following statements is true? a. Activity-based costing uses a number of activity cost pools, each of which is allocated to products on the basis of direct labor-hours. b. Activity rates in activity-based costing are computed by dividing costs from the first stage allocations by the activity measure for each activity cost pool. C. An activity-based costing system is generally easier to implement and maintain than traditional costing system. d. One of the goals of activity-based costing...
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...
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...
Select the incorrect statement regarding the use of cost drivers in activity based costing systems. Multiple Choice O ABC uses volume-based and activity based cost drivers. 0 Volume based drivers are most appropriate for costs that are affected by the number of units produced 0 ABC's use of multiple cost drivers will produce less accurate unit costs when a company produces many different products that require different types and levels of overhead costs. 0 An arbitrary cost driver must be...
Which of the following statements about adolescent sexual activity is correct? A. Less than 1/3 of sexually active children report using condoms in their most recent sexual activity. B. Of the students using contraception, more use the birth control pill than use condoms. C. Teens who are involved in sports or after-school activities have lower rates of sexual activity than teens who do not participate in such activities. D. Among girls, those who are sexually active are less likely to...
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