4_Introduction to Product Costing_Cost Allocation_QUESTIONS

A costing approach in which all manufacturing costs are product costs." This statement best describe. a. Normal Costing O b. Variable Costing C. Absorption Costing d. Actual Costing

?Which of the following is not a step involved in activity-based costing Assign costs to products by multiplying the cost driver rate by the volume of cost driver units consumed by a O .the product .Determine how to reduce the costs of making products by cutting activities .b O Identify the activities that consume resources and assign costs to those activities c O .Compute a cost rate per cost driver unit or transaction .d O

Accounting When refining a costing system, the desire to identify direct costs, is primarily drive by the fact that: a.Direct Costs are cheaper to identify cross out b.Direct costs are traceable cross out c.Direct costs are included in manufacturing overhead cross out d.Direct costs are not included in cost of good sold

Under which costing system non-manufacturing costs may be included in ?calculating product costs „Activity based costing system only a None of the given answers .b „Absorption costing and Variable costing systems .c Absorption costing system only .d Variable costing system only .e

Which of the following are considered to be benefits of activity-based costing (ABC)?   1. More accurate product costs 2. Reduced complexity of calculating costs 3. Inclusion of non-manufacturing costs 4. More detailed understanding of what drives cost.     a. 1, 3 and 4   b. 2, 3 and 4   c. 1, 2 and 3   d. 1, 2 and 4

Which cost accounting method assumes that the cost of production is driven by the number of units produced? A. Activity-Based Costing (ABC)B. Standard CostingC. Absorption CostingD. Variable Costing

1. Define cost accounting, what are the two basic types of product costing. Explain any one of them with example of product manufactured.

Which of the following is not a step involved in activity-based costing? Select one O a Compute a cost rate per cost driver unit or transaction. O bidentify the activities that consume resources and assign costs to those activities -O CAssign costs to products by multiplying the cost driver rate by the volume of cost driver units consumed by the product o d Determine how to reduce the costs of making products by cutting activities

Consider the following statements regarding traditional costing system: I – Overhead costs are applied to products on the basis of volume-related measures II – All manufacturing costs are easily traceable to the goods produced III – Traditional costing system tend to distort unit manufacturing costs when numerous goods are made that have widely varying production requirements   Which of the above statements is/are true?

Selling and administrative expenses are considered to be: a. A period cost under variable costing b. A product cost under variable costing c. Part of fixed manufacturing overhead under variable costing O d. A product cost under absorption costing.

Which of the following statements is true? *   A. The traditional approach to costing uses many different cost drivers. B. Costs that are indirect to products are by definition traceable to directly to products. C. Costs that are indirect to products are traceable to some activity. D. All of the above statements are true.

3.Activity based costing (ABC) is a method of allocating the indirect costs of sales commissions to products. A. true b. false

Traditional 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 low-volume products and the cost of the cost of high-volume products. Select one: Oa. Overstates, Overstates b. none of the given answer. O c. Overstates, Understates O d. Understates, Understates Oe. Understates, Overstates Next page Tables- Jump to..