WorksheetsCOST ACCOUNTING - ACTIVITY BASED COSTING
Total questions: 10
Worksheet time: 3mins
the activity based costing system is one that
traces costs to activities and then to products
traces products to activities and then to resources
traces cost to resources and then to activities
traces activities to costs and then to resources
Which costing system asigns costs within multiple cost pools to products using multiple cost drivers?
ABC system
Varible costing
absorption costing
all of the above
ABC system would probably provide the greatest benefits for organizations that use
Process costing
Job order costing
standard costing
absorption costing
_________ is the product or department for which costs are accumulated or measured
cost driver
cost object
cost accounting
activity based costing
Direct labor cost is an example of
facility level activity
batch level activity
Unit Level Activity
Product line activity
The last step in ABC System is
assign manufacturing overhead cost for each cost pool to products
Identify major activities involved in the manufacture of specific products
Identify the cost driver that has a strong correlation to the costs accumulated in the cost pool
Compute the factory overhead rate
The following are benefits of ABC except
better management decisions
more control over manufacturing overhead costs
elimination of all arbitrary cost allocations
more accurate cost data
Which of the following types of characteristics tend to cause too little overhead costs to be charged to the product using traditional cost allocations
a relatively low small products
a relative low volume products
a relative high volume products
a and b
ABC System cannot be used by
Manufacturers
Book publishers
Hotel
None of the choices
Which of the following is not a broad,, cost classification category typically used in ABC System
Facility level activity
Batch level activity
Unit level activity
Product line activity
