Homework Answers
Question no -22
Answer : It provides similar results to traditional costing when one avtivity creates a substantial amount of total cost.
Explanation
ABC provides method of assigning overhead and indirect cost to products and services.ABC system based on activities which can be any event ,unit or task.
In ABC Costing there are multiple cost pool and each has it's own measure of activity. ABC provides more accurate rate for applying overhead but if there is one activity creates substantial amount of overhead it will provide similar result as Traditional costing.
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Uhlt 4 Activity Based Costing Question 22 (1 point) Which of the following statements about activity-based...
Hello, thanks for helping compare. 3) Which of the following is NOT a characterization of activity-based...
Hello, thanks for helping compare. 3) Which of the following is NOT a characterization of activity-based costing? Select one: A. identifying all resources used by activities regardless of how individual costs behave in the short run B. identification of only variable costs C. using the cost hierarchy to allocate costs to products D. identification of all costs used by activities 4) Indications that a product cost system needs revision include Select one: A. the company uses a single allocation base...
please answer the following questions. 5. Answer True or False for the following: Activity Based Costing...
please answer the following questions.
5. Answer True or False for the following: Activity Based Costing is NOT a more accurate allocation of manufacturing overhead than Traditional Costing. Cost drivers are activities that drive the cost to be accumulated. Traditional systems use a plant wide manufacturing allocation rate. The third step to ABC costing is to identify each activity and estimate its total indirect cost. Value Engineering includes the financial team only of a company. When calculating cost based pricing...
Hello, I am doing homework questions and was hoping to compare answers. Thanks, 1) Ernsting Printers...
Hello, I am doing homework questions and was hoping to compare answers. Thanks, 1) Ernsting Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2015, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 12 million pages. For 2015 Ernsting Printers has decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead...
Which of the following statements about activity-based costing is false? Activity-based costing is most appropriate for...
Which of the following statements about activity-based costing is false? Activity-based costing is most appropriate for a firm that produces similar products that use similar resources. Activity-based costing requires a two-stage allocation of costs. Activity-based costing categorizes costs as unit-level, batch-level, product-level, or organization-sustaining. Activity-based costing can be used for manufacturing, administrative, or selling costs.
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...
QUESTION 9 Activity based costing allocates overhead (indirect costs) to fixed costs based upon four different...
QUESTION 9 Activity based costing allocates overhead (indirect costs) to fixed costs based upon four different types of drivers. Which of the following is one of the cost drivers that serves as a basis of cost allocation? a. direct equipment costs b. number of labor hours c. number of units produced d. quantity of materials used QUESTION 13 Which of these is NOT one of the items that can provide useful assistance to a project team to define the...
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...
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...
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...
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...
please answer the following questions.
5. Answer True or False for the following: Activity Based Costing is NOT a more accurate allocation of manufacturing overhead than Traditional Costing. Cost drivers are activities that drive the cost to be accumulated. Traditional systems use a plant wide manufacturing allocation rate. The third step to ABC costing is to identify each activity and estimate its total indirect cost. Value Engineering includes the financial team only of a company. When calculating cost based pricing...
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...
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...
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...
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...
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