Which of the following is not a step involved in activity-based costing? Multiple Choice Identify the...
Which of the following is not a step involved in activity-based costing?
Multiple Choice
-
Identify the activities that consume resources and assign costs to those activities.
-
Assign costs to products by multiplying the cost driver rate by the volume of cost driver units consumed by the product.
-
Compute a cost rate per cost driver unit or transaction.
-
Determine how to reduce the costs of making products by cutting activities.
Homework Answers
| Option D is the answer | |
| Activity based costing is a costing technique where production is split into different processes and the overheads incurred there are allocated to products using the allocation base/cost driver |
Add Answer to:
Which of the following is not a step involved
in activity-based costing?
Multiple Choice
Identify the...
no need for details, just the final answer Which of the following is not a step...
no
need for details, just the final answer
Which of the following is not a step involved in activity-based costing? Select one: a. Identify the activities that consume resources and assign costs to those activities O b. Assign costs to products by multiplying the cost driver rate by the volume of cost driver units consumed by the product Oc Compute a cost rate per cost driver unit or transaction d. Determine how to reduce the costs of making products by...
The last step in activity-based costing is to identify the cost driver that has a strong...
The last step in activity-based costing is to
identify the cost driver that has a strong correlation to the
activity cost pool.
assign overhead costs to products, using overhead rates
determined for each cost pool.
identify and classify the activities involved in the
manufacture of specific products, and allocate overhead to cost
pools.
compute the activity-based overhead rate per cost driver.
QUESTION 2 The first step in activity-based costing is to assign manufacturing overhead costs for each...
QUESTION 2 The first step in activity-based costing is to assign manufacturing overhead costs for each activity cost pool to products. compute the activity-based overhead rate per cost driver. identify and classify the major activities involved in the manufacture of specific products. identify the cost driver that has a strong correlation to the activity cost pool.
(Ch4) The first step in activity-based costing is to Select one: O a. assign manufacturing overhead...
(Ch4) The first step in activity-based costing is to Select one: O a. assign manufacturing overhead costs for each activity cost pool to products. O b. identify and classify the major activities involved in the manufacture of specific products. O c. calculate the activity-based overhead rate per cost driver. O d. identify the cost driver that has a strong correlation to the activity cost pool. (Ch4) Activity-based costing Select one: O a. uses direct labor as its primary cost driver....
A basic assumption of activity-based costing (ABC) is that: Multiple Choice O All manufacturing costs vary...
A basic assumption of activity-based costing (ABC) is that: Multiple Choice O All manufacturing costs vary directly with units of production O Products or services require the performance of activities and activities consume resources o Only costs that respond to unit-level drivers are product costs. O Only variable costs are included in the activity cost pools.
Which of the following would activity-based costing most likely lead to? Multiple Choice O Distorting product...
Which of the following would activity-based costing most likely lead to? Multiple Choice O Distorting product cos costs. Raising the sale price of high-volume products. O Raising the sale price of low-volume products. Expanding low-volume products that appear to be profitable. O Cutting back on high-volume products that appear to be unprofitable.
Help Which of the following statements is correct? Multiple Choice Activity based management seeks to eliminate...
Help Which of the following statements is correct? Multiple Choice Activity based management seeks to eliminate waste by allocating costs to products that waste resources Activity based costing involves a two-stage allocation process in which overhead costs are first assigned to departments and then to jobs on the basis of direct labor hours In activity-based costing a separate activity rate se predetermined overhead rate) is computed for each activity cost pool by dividing the estimated overhead cost in the activity...
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...
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...
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...
no
need for details, just the final answer
Which of the following is not a step involved in activity-based costing? Select one: a. Identify the activities that consume resources and assign costs to those activities O b. Assign costs to products by multiplying the cost driver rate by the volume of cost driver units consumed by the product Oc Compute a cost rate per cost driver unit or transaction d. Determine how to reduce the costs of making products by...
The last step in activity-based costing is to
identify the cost driver that has a strong correlation to the
activity cost pool.
assign overhead costs to products, using overhead rates
determined for each cost pool.
identify and classify the activities involved in the
manufacture of specific products, and allocate overhead to cost
pools.
compute the activity-based overhead rate per cost driver.
QUESTION 2 The first step in activity-based costing is to assign manufacturing overhead costs for each activity cost pool to products. compute the activity-based overhead rate per cost driver. identify and classify the major activities involved in the manufacture of specific products. identify the cost driver that has a strong correlation to the activity cost pool.
(Ch4) The first step in activity-based costing is to Select one: O a. assign manufacturing overhead costs for each activity cost pool to products. O b. identify and classify the major activities involved in the manufacture of specific products. O c. calculate the activity-based overhead rate per cost driver. O d. identify the cost driver that has a strong correlation to the activity cost pool. (Ch4) Activity-based costing Select one: O a. uses direct labor as its primary cost driver....
A basic assumption of activity-based costing (ABC) is that: Multiple Choice O All manufacturing costs vary directly with units of production O Products or services require the performance of activities and activities consume resources o Only costs that respond to unit-level drivers are product costs. O Only variable costs are included in the activity cost pools.
Which of the following would activity-based costing most likely lead to? Multiple Choice O Distorting product cos costs. Raising the sale price of high-volume products. O Raising the sale price of low-volume products. Expanding low-volume products that appear to be profitable. O Cutting back on high-volume products that appear to be unprofitable.
Help Which of the following statements is correct? Multiple Choice Activity based management seeks to eliminate waste by allocating costs to products that waste resources Activity based costing involves a two-stage allocation process in which overhead costs are first assigned to departments and then to jobs on the basis of direct labor hours In activity-based costing a separate activity rate se predetermined overhead rate) is computed for each activity cost pool by dividing the estimated overhead cost in the activity...
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...
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...
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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