ACC 212 Exam III review (Chapter 17 & 20)

What is Activity Based Costing?

• Assigning costs to a product using a single rate.

• A detailed method of assigning overhead costs to work-in-process.

• A detailed method of assigning product costs to work-in-process.

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  A detailed method of assigning fixed costs to work-in-process.

  
  

What is the Plant-Wide overhead Method?

• Assigning costs to a product using a single rate.

• Assigning costs to a product using a continous rate.

• A detailed method of assigning overhead costs to work-in-process

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What are overhead costs?

• Costs that Cannot be traced to units of product in the same way that direct labor can.

• One-time expenses directly related to production
• Personal expenses of the business owner
• Costs that Can be traced to units of product in the same way that direct labor can.

What is the object of plant wide overhead?

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• The cost object of the plant wide overhead rate is the cost of the product.

• The cost object of the plant wide overhead rate is the percentage of product.

• The cost object of the plant wide overhead rate is the unit of product.

what is the basic principle of activity based costing?

• all thee above

• The activity based costing has the principle that underlying activity-based is the activities are what caused overhead cost to be incurred

• the activity based costing has the principle that underlying activity-based is the activities are what cause work-in-process to be incurred

• The activity based costing has the principle that underlying activity-based is the activities are what caused overhead cost to be incurred

how is the formula for activity based costing?

• Identify costs, assign activities to costs, allocate costs to products or services
• Assign activities, identify costs to activities, allocate costs to products or services
• Allocate costs to products or services, identify activities, assign costs to activities
• its upper management provides the best financial transparency

What is the company's plantwide overhead rate if machine hours are allocated based?

• $487.00

• $305.00

• $235.00

• $501.00

How much overhead are we going to assign to WIP # 1?

• $27,000

• $44,000

• $57,000

• $37,000

What is a selling expense budget?

• outlines the expected costs associated with production of a product or service.

• a financial plan that outlines the expected revenue from selling a product or service.

• the expenses that you incur in order to sell a product.

• outlines the expected costs associated with buying a product or service.

What is an activity based budget?

• a managerial accounting report that shows budgeted sales in the expenses or budgeted sales in the period.

• a budgeting method that ignores the financial performance of different activities.

• An activity based budget is a budgeting method that only considers fixed costs.
• a budgeting method that focuses on the revenue generation of a company.