40.
A two-stage system first allocates costs to:
41.
First stage cost objects do not include:
42.
The basic difference between a first-stage cost allocation and a second-stage cost
allocation is that:
43.
Activity-based costing (ABC) is a costing technique that uses a two stage allocation
process. Which of the following statements best describes these two stages?
44.
Cost pools are used with:
Plantwide Rates
Department Rates
A.
Yes
No
B.
No
Yes
C.
No
No
D.
Yes
Yes
45.
Which of the following should not be used as the allocation base in a company that
appropriately uses a single plantwide rate?
46.
47.
Multiple (departmental) manufacturing overhead rates are considered preferable to a
single (plantwide) overhead rate when: (CMA adapted)
48.
The classification of cost drivers into general levels of activity, volume, batch, product, and
so on is known as:
49.
50.
The electricity used for production machinery would be classified as a:
51.
The number of services provided by an accounting firm would be classified as an:
52.
Which of the following costs is not related to a batch-related activity?
53.
Which of the following would not be a batch-related activity?
54.
Which of the following measures is used by traditional costing systems as an allocation
base for allocating overhead costs to the units produced?
55.
Which of the following measures is used by activity–based costing (ABC) systems as an
allocation base for allocating overhead costs to the units produced?
56.
What is the typical effect on the numbers of cost pools and cost assignment bases when
an activity-based costing (ABC) system replaces a traditional costing system? (CPA
adapted)
Cost Pools
Cost Assignment Bases
A.
No effect
No effect
B.
Increase
No effect
C.
No effect
Increase
D.
Increase
Increase
57.
Personnel administration is an example of a:
58.
Which of the following activities would be classified as a batch-level activity?
59.
Would the following activities at a manufacturer of canned soup be best classified as unit–
level, batch-level, product-level, or organization-sustaining activities?
Researching new
recipes
Shipping orders to
grocery stores
A.
Unit
Unit
B.
Batch
Batch
C.
Product
Unit
D.
Product
Batch
60.
Property taxes are an example of a cost that would be considered to be:
61.
Product costs are computed by:
62.
Which of the following is not a step involved in activity-based costing?
63.
64.
Volume-based costing allocates indirect product costs based on the volume of output,
using such allocation bases as direct labor hours, machine hours, or the amount of direct
material used in the production process. Activity-based costing (ABC) has consistently
shown that Volume-based costing ___________ the cost of high volume products and
______________ the cost of low volume products.
High Volume
Products
Low Volume
Products
A.
Overstates
Overstates
B.
Overstates
Understates
C.
Understates
Overstates
D.
Understates
Understates
65.
Companies using activity-based costing (ABC) have learned that costs are a function of:
66.
Activity-based costing provides: