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Name of Activity or Account Classificatlon by Activity level Acquiring material . Batch Inspecting incoming materials Batch Moving materials . Batch Planning production Batch Processing special orders Batch Processing supplier invoices Batch Receiving material. Batch Scheduling production Batch Inspecting production processes Batch Processing purchase orders Building occupancy Batch Facility Depreciation Facility General management Facility Facility Maintaining facilities Managing the environment Facility Assuring quality Product Sustaining Expediting Product Sustaining Maintaining tools and dies Maintaining/improving production processes Product Sustaining Product Sustaining Product Sustaining Product Sustaining Managing human resources Managing waste disposal Processing payroll Product Sustaining Processing production information Product Sustaining Providing product cost Product Sustaining Setting manufacturing methods Product Sustaining Supervising production. Product Sustaining Sustaining accounting Maintaining production equipment Product Sustaining Product Sustaining Direct-labor allowances Unit Direct-labor fringes Unit Utilities (equipment) Unit Overtime (hourly) Unit Rework. Unit Shift differential Unit Spoilage Unit

Name of Activity or Account Classificatlon by Activity level Acquiring material . Batch Inspecting incoming materials Batch Moving materials . Batch Planning production Batch Processing special orders Batch Processing supplier invoices Batch Receiving material. Batch Scheduling production Batch Inspecting production processes Batch Processing purchase orders Building occupancy Batch Facility Depreciation Facility General management Facility Facility Maintaining facilities Managing the environment Facility Assuring quality Product Sustaining Expediting Product Sustaining Maintaining tools and dies Maintaining/improving production processes Product Sustaining Product Sustaining Product Sustaining Product Sustaining Managing human resources Managing waste disposal Processing payroll Product Sustaining Processing production information Product Sustaining Providing product cost Product Sustaining Setting manufacturing methods Product Sustaining Supervising production. Product Sustaining Sustaining accounting Maintaining production equipment Product Sustaining Product Sustaining Direct-labor allowances Unit Direct-labor fringes Unit Utilities (equipment) Unit Overtime (hourly) Unit Rework. Unit Shift differential Unit Spoilage Unit

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 30P: The following items are associated with a traditional cost accounting information system, an...
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United Technologies Corporation implemented activity-based costing in two of its subsidiaries: Otis Elevator Company and Carrier Corporation. The following table shows 27 activities and eight accounts identified at Carrier, along with the classification determined by the ABC project team.12

Required: Choose two activities or accounts from each of the four classifications and explain why you agree or disagree with the ABC project team’s classification.

Name of Activity or Account Classificatlon by Activity level Acquiring material . Batch Inspecting incoming materials Batch Moving materials . Batch Planning production Batch Processing special orders Batch Processing supplier invoices Batch Receiving material. Batch Scheduling production Batch Inspecting production processes Batch Processing purchase orders Building occupancy Batch Facility Depreciation Facility General management Facility Facility Maintaining facilities Managing the environment Facility Assuring quality Product Sustaining Expediting Product Sustaining Maintaining tools and dies Maintaining/improving production processes Product Sustaining Product Sustaining Product Sustaining Product Sustaining Managing human resources Managing waste disposal Processing payroll Product Sustaining Processing production information Product Sustaining Providing product cost Product Sustaining Setting manufacturing methods Product Sustaining Supervising production. Product Sustaining Sustaining accounting Maintaining production equipment Product Sustaining Product Sustaining Direct-labor allowances Unit Direct-labor fringes Unit Utilities (equipment) Unit Overtime (hourly) Unit Rework. Unit Shift differential Unit Spoilage Unit
Transcribed Image Text:Name of Activity or Account Classificatlon by Activity level Acquiring material . Batch Inspecting incoming materials Batch Moving materials . Batch Planning production Batch Processing special orders Batch Processing supplier invoices Batch Receiving material. Batch Scheduling production Batch Inspecting production processes Batch Processing purchase orders Building occupancy Batch Facility Depreciation Facility General management Facility Facility Maintaining facilities Managing the environment Facility Assuring quality Product Sustaining Expediting Product Sustaining Maintaining tools and dies Maintaining/improving production processes Product Sustaining Product Sustaining Product Sustaining Product Sustaining Managing human resources Managing waste disposal Processing payroll Product Sustaining Processing production information Product Sustaining Providing product cost Product Sustaining Setting manufacturing methods Product Sustaining Supervising production. Product Sustaining Sustaining accounting Maintaining production equipment Product Sustaining Product Sustaining Direct-labor allowances Unit Direct-labor fringes Unit Utilities (equipment) Unit Overtime (hourly) Unit Rework. Unit Shift differential Unit Spoilage Unit
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