abc costing

abc costing

University

8 Qs

quiz-placeholder

Similar activities

Kuiz Kursus Asas PRS Zon Tengah

Kuiz Kursus Asas PRS Zon Tengah

University

10 Qs

The Greatest Math Quiz On the Planet!

The Greatest Math Quiz On the Planet!

8th Grade - Professional Development

12 Qs

Week 6 Quiz Wireless

Week 6 Quiz Wireless

University

12 Qs

Office Administrative 2

Office Administrative 2

University

10 Qs

Quiz on C1.2.9

Quiz on C1.2.9

University

10 Qs

IOP

IOP

University - Professional Development

10 Qs

Module 1- Python Basics_2nd_Semester

Module 1- Python Basics_2nd_Semester

University

10 Qs

S1.24 BUSM4570 WEEK 9

S1.24 BUSM4570 WEEK 9

University

12 Qs

abc costing

abc costing

Assessment

Quiz

Education

University

Practice Problem

Medium

Created by

laili ismail

Used 19+ times

FREE Resource

AI

Enhance your content in a minute

Add similar questions
Adjust reading levels
Convert to real-world scenario
Translate activity
More...

8 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main purpose of Activity Based Costing (ABC)?

To identify labour hours

To allocate overhead based on activities

To determine quality control costs

To calculate direct material costs

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a cost driver in ABC?

Activities that drive the costs

Direct labour costs

Machine maintenance costs

Transportation costs

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are cost pools in ABC?

Direct material costs

Distinct activities that drive costs assigned in monetary value

Indirect labour costs

Marketing costs

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the formula for calculating the cost driver rate in ABC?

Machine maintenance cost / Production units

Direct labour cost / Direct material cost

Total overhead / Number of employees

Cost pool / Basis of activity driver

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are the steps for designing ABC?

Identify production units, Calculate labour hours, Calculate machine hours, Calculate total overhead costs

Identify marketing activities, Trace costs to the departments, Calculate total costs, Prepare financial statements

Calculate direct material costs, Calculate direct labour costs, Calculate overhead costs, Calculate total production costs

Identify activities and cost classification, Trace costs to the pools, Relate activities to the cost drivers and then to the rate, Total up the costs and show new costs under the new classification

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main difference between Traditional Costing and ABC?

Traditional Costing has more levels of cost hierarchy than ABC

ABC uses cost drivers to determine cost objects, while Traditional Costing uses blanket rates

Traditional Costing is more expensive than ABC

ABC only considers direct costs, while Traditional Costing considers indirect costs

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a limitation of ABC?

ABC is inexpensive to implement

Cost driver basis is accurate

Pricing and decision making are not improved

Classification of overheads is subjective

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Google

Continue with Google

Email

Continue with Email

Classlink

Continue with Classlink

Clever

Continue with Clever

or continue with

Microsoft

Microsoft

Apple

Apple

Others

Others

Already have an account?

Discover more resources for Education