Which of the following classifications would costs incurred to handle each unit sold fit into?
A) customer output unit-level cost |
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B) customer batch-level cost |
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C) customer-sustaining cost |
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D) corporate-sustaining cost |
Answer: A) Customer Output Unit-level Cost
The cost incurred to each unit sold must be incurred is the Customer output unit-level cost. Output level cost includes the all the costs incurred until the sales made.
Which of the following classifications would costs incurred to handle each unit sold fit into? A)...
Which of the following costs incurred subsequent to the acquisition of machine would be appropriately accounted for by debiting the accumulated depression account related to the machine . a. the cost of cleaning and lubricating the machine. b. the cost of overhauling and extending the life of the machine. c. the cost of moving the machine to another manufacturing plant. d. the cost of new attachment to the machine that provides for more output per unit of the time.
12. Which of the following activity costs would likely be included in a batch-level activity cost pool? A. Per unit inspection costs B. Machine set-up costs C. Quality control costs D. All of these answers are correct. 13. A product-level activity center would likely include all of the following costs except: A. engineering development costs. B. legal fees to obtain and protect patents. C. packaging design costs. D. materials handling costs.
Activity-based costing defines five levels of activity. Which of the following activity levels would property taxes fall into? a. Unit-level. b. Batch-level. c. Product-level. d. Organization-sustaining.
Roberta, Inc., manufactures elliptical machines for several
well-known companies. The machines differ significantly in their
complexity and their manufacturing batch sizes. The following costs
were incurred in 2017:
Requirement 1. Classify each of the preceding
costs as output unit-level, batch-level, product-sustaining, or
facility-sustaining. Explain each answer (answer options
are in bold on the cost-type row pick one).
Cost Item
Cost Type
a. Indirect manufacturing labor costs such as
supervision that supports direct manufacturing labor,
$935,000
(Batch Level, Facility-sustaining, Output unit-level,...
amherst metal works
ABC systems commonly use a cost hierarchy with four levels to identify cost-allocation bases that are cost drivers of the activity cost pools: (1) Output unit-level costs: the costs of activity performed on each individual unit of a product or service. (2) Batch-level costs: the costs of activities related to a group of units of a product or service. (3) Product-sustaining costs (service-sustaining costs): the costs of activities undertaken to support individual products or services, regardless of...
Cost of Goods Sold (using GAAP rules) includes the following classifications: a. variable raw material costs. b. variable direct labor costs. c. variable manufacturing overhead costs. d. fixed manufacturing overhead costs. e. all of the above.
Which of the following is true of corporate-sustaining costs? A) are common to all individual customers B) have a clear cause-and-effect relationship with several cost-allocation bases C) should be allocated for decisions regarding reducing customer costs D) evaluates the effectiveness of sales personnel
Support department costs are normally accounted for as which of the following responsibility center classifications? a. profit center b. cost center c. revenue center d. investment center
Classify each of the following costs as either unit-level, batch-level, product-level, or facility-level. a. Engineering costs for new product b. Order processing c. Depreciation on factory d. Direct labor
Which one of the following cast drivers would best be associated with the activity of physician time in a medical clinic? The number of accreditations held by the clinic. Physician minutes with a patient Number of new patients visits Number of continuing patient visits 2. Magnolia Industries combines all manufacturing overhead into a single cost pool and allocates this overhead to products by using machine hours. Activity based costing would likely show that with Magnolia’s current procedures that: All of...