Test bank chapter 5
141.The Time Equation is used in ABC to:
A. Track the implementation of the ABC system.
B. Assess the amount of time required for each activity, in determining the application rate.
C. Incorporate complexities in the application of ABC.
D. Plan for the implementation of an ABC system.
E. None of the above.
142.In the context of ABC, cross-subsidization refers to:
A. Production departments subsidizing each other.
B. Costing inaccuracies which affect the relative profitability of products.
C. Cross-selling products lines, which affect customer profitability.
D. Efforts to increased coordination among department heads.
E. None of the above.
143.Important concepts in resource consumption accounting include all of the following except:
A. Variable costing.
B. Resource interrelationships.
C. Activity interrelationships.
D. Detail level cost information.
E. Treatment of idle capacity.
144.Time-driven ABC provides a direct way to measure:
A. Production efficiency.
B. Unused capacity.
C. Product line profitability.
D. Value-adding activities.
E. Customer value.
145.What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours?
A. $9,960.
B. $30,240.
C. $43,741.
D. $44,268.
E. $109,352.
146.What is the total manufacturing overhead for the current product order if the firm assigns overhead costs based on machine hours?
A. $9,960.
B. $30,240.
C. $43,741.
D. $44,268.
E. $109,352.
147.Using ABC, how much machine setup overhead is assigned to the order?
A. $19,200.
B. $8,000.
C. $11,108.
D. $9,960.
E. $7,272.
148.Using ABC, how much material handling overhead is assigned to the order?
A. $19,200.
B. $8,000.
C. $11,108.
D. $9,960.
E. $7,272.
149.Using ABC, how much quality control overhead is assigned to the order?
A. $8,000.
B. $9,960.
C. $11,108.
D. $19,200.
E. $45,933.
150.Using ABC, how much other overhead is assigned to the order?
A. $8,000.
B. $9,960.
C. $11,108.
D. $19,200.
E. $45,992.
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Solution: Test bank chapter 5