Question

What is the major difference between ABC and ABM?
A. ABC is used in managerial accounting while ABM is used in financial accounting.
B. ABC focuses on control while ABM focuses on measurement.
C. The goal of ABC is to accurately measure costs while the goal of ABM is to manage the activities which cause the costs.
D. There is no difference; ABC and ABM are two names for the same thing.

Which of the following choices correctly classifies a committed fixed cost and a
discretionary fixed cost?
Committed Discretionary
A. Promotion Management salaries
B.Building depreciation Charitable contributions
C. Management training Property taxes
D.Equipment rentals Equipment depreciation
E.Research and development Advertising

In comparison with firms that use plant-wide overhead rates and departmental overhead rates, companies that have adopted activity-based costing will typically use:
A. more cost pools and more cost drivers.
B. more cost pools and fewer cost drivers.
C. fewer cost pools and more cost drivers.
D. fewer cost pools and fewer cost drivers.
E. only one cost pool and one cost driver

Answer 1

What is the major difference between ABC and ABM?

Answer C. The goal of ABC is to accurately measure costs while the goal of ABM is to manage the activities which cause the costs.

Which of the following choices correctly classifies a committed fixed cost and a
discretionary fixed cost?

Committed Fixed Cost- D. Equipment rentals Equipment depreciation

Discretionary Fixed Cost- E. Research and development Advertising

In comparison with firms that use plant-wide overhead rates and departmental overhead rates, companies that have adopted activity-based costing will typically use:

B. more cost pools and fewer cost drivers.