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Which of the following is not a benefit of implementing ABC?

• More accurate cost allocation

• Simpler cost tracking

• Better decision-making

• Enhanced process efficiency

What is the main disadvantage of ABC?

• It is too simple for large organizations

• It provides inaccurate cost information

• It can be complex and costly to implement

• It ignores overhead costs

Which of the following would be a suitable activity driver for a machine setup cost?

• Direct labor hours

• Number of setups

• Number of design changes

• Number of batches

Choose traditional coting's base

• Direct Labor Hours

• Setup

• Machine Hours

• Square Footage Occupied

• Customer Relation

Which type of costing generally leads to overcosting or undercosting of products?

• Activity-Based Costing

• Job-order costing

• Traditional costing

• Process costing

Company X has total overhead costs of $500,000 and 10,000 direct labor hours. What is the overhead rate per labor hour in a traditional costing system?

• $500,000

• $50

• $500

• $5,000

Company Y produces two products: Product A (1,000 units) and Product B (500 units). Total setup costs are $30,000, with 10 setups for Product A and 5 setups for Product B. If setup costs are allocated using the number of setups in ABC, what is the total set up cost for Product A?

• $2,000

• $3,000

• $2,000,000

• $3,000,000

What is the total overhead cost allocated to Product X using the ABC system?

• $202,000

• $212,000

• $222,000

• $232,000