Cost Management Systems

How many allocation rates are calculated under an activity based costing system?

• One single plant-wide rate

• A rate for each department

• A rate for each activity

• No rates

How do you calculate the predetermined overhead allocation rate?

• Total estimated overhead cost divided by Total actual quantity of the allocation base

• Total estimated overhead cost divided by Total estimated quantity of the allocation base

• Total estimated overhead cost multiplied by Total estimated quantity of the allocation base

• Total actual overhead cost divided by Total actual quantity of the allocation base

Which decisions are made with Activity Based Costing information?

• Pricing & Product Mix Decisions

• Cost Management Decisions

• Both

• None of these

Value Engineering Teams consist of which individuals?

• Only Accountants

• Accountants and Engineers

• Marketers, Engineers, Production, & Accountants

• Production & Engineers

Full Product Cost should be more than the Target Cost.

• True

• False

Which of the following is NOT a characteristic of a Just in Time System?

• Large quantities of inventory

• Strong relationship with suppliers

• Uses a Raw and In-Process Inventory Account

• Waits for products to be completed before recording cost

Which type of quality cost is used to avoid poor-quality goods or services?

• Prevention Costs

• Appraisal Costs

• Internal Failure Costs

• External Failure Costs

Direct Manufacturing Costs are which of the following?

• Assigned to products & services

• Estimated to products & services

• Allocated to products & services

• Period Costs