Acct 2920 Ch 9 Quiz

Traditional job costing generally causes some products to be overcosted and others undercosted - known as smoothing.

• True
• False

Activity-based costing defines DM and DL differently than traditional costing methods.

• True
• False

With activity-based costing, what item(s) may be included in a product's full cost.

• Direct materials
• Variable MOH
• Sales revenue
• Varliable selling expense

In an ABC system, cost drivers should be

• based on the number of units produced
• ignored.
• direclty related to the sales price of each product.
• directly related to the activity being performed.

Which of the following are levels in the ABC Cost Hierarchy?

• Unit-level
• Batch-level
• Product-level
• Location-level
• Facility-level

A company manufactures cookies. It recalibrates the ovens between the different flavors of cookies. What type of activity is this?

• Unit-level
• Batch-level
• Product-level
• Factory-level

A company manufactures tables. The electricity used to operate saws and sanders is what type of activity?

• Unit-level
• Batch-level
• Product-level
• Factory-level

A company manufactures bicycles. Depreciation on factory equipment is what type of activity?

• Unit-level
• Batch-level
• Product-level
• Factory-level

Which describes the quantity needed to satisy average customer demand?

• Theroetical capacity
• Practical capacity
• Normal capacity

What are the benefits of an ABC system?

• More precise profit planning
• Need for two costing systems
• Initial costs
• Better pricing decisions