ch05
Student:
1.
The major limitation of volume-based costing systems is the use of volume-based:
A. Criteria.
B. Standards.
C. Rates.
D. Variances.
E. Restrictions.
2.
Volume-based rates produce inaccurate product cost when:
A. A large share of factory overhead cost is not volume-based.
B. Firms produce a diverse mix of products.
C. Large volumes of a product are manufactured.
D. Both answer A and answer B are correct.
E. None of the answers above is correct.
3.
If the usage of project activities is not proportional to the number of units produced, then some managers will be overcharged and others undercharged under the:
A. Activity-based costing
B. Volume-based costing
C. Overhead costing
D. Process
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A. Direct labor hours.
B. Direct material dollars.
C. Machine hours.
D. Production orders.
E. None of the above.
16. The management of activities to improve the value received by the customer and the competitiveness of the organization is:
A. Cost driver analysis.
B. Customer profitability analysis.
C. Activity-based management.
D. Performance measurement.
E. Activity analysis.
17. The examination of the efficiency of each of a firm's activities is:
A. Activity analysis.
B. Pareto analysis.
C. Activity-based management.
D. Performance measurement.
E. Attribute-based management.
18. Which one of the following is a high value-added activity?
A. Set-up.
B. Rework.
C. Repair.
D. Storage.
E. Processing.
19. In regard to selling activities, which one of the following would be a cost driver for selling expense?
A. Number of invoices.
B. Number of sales calls.
C. Number of production runs.
D. Number of shipments.
E. All of the above.
20. Which one of the following is not a recommendation for a successful implementation of ABC/M?
A. Obtain support of management and personnel.
B. Complete an activity analysis.
C. Start with a relatively simple system.
D. Use ABC/M on a job that will succeed.
E. All of the above are features of successful ABC/M implementations.
21. Which of the following activities is a facility-level activity?
A. Plant management salaries.
B. Depreciation on a highly specialized
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