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ACC 350 WK 11 Final Exam – StrayerPurchase here:http://xondow.com/ACC-350-WK-11-Final-Exam-Strayer-ACC35010.htmACC 350 WK 11 Final Exam 1) A top-selling product might actually result in losses for the company. Answer:2) Companies that undercost products will most likely lose market share. Answer:3) If companies increase market share in a given product line because their reported costs are less than their actual costs, they will become more profitable in the long run. Answer:4) As product diversity and indirect costs increase, it is usually best to switch away from an activity based cost system to a broad averaging system. Answer:5) If a company undercosts one of its products, then it will overcost at least one of its other products. Answer:6) Direct costs plus indirect costs equal total costs. Answer: 7) When refining a costing system, a company should classify as many costs as possible as indirect costs. Answer:8) In a homogeneous cost pool, all costs have a similar cause-and-effect relationship with the cost-allocation base. Answer:9) Indirect labor and distribution costs would most likely be in the same activity-cost pool. Answer:10) Activity-based costing helps identify various activities that explain why costs are incurred. Answer:11) Direct tracing of costs improves cost accuracy. Answer:12) A cost-allocation base is a necessary element when using a strategy that will refine a costing system. Answer:13) An activity-based costing system is necessary for costing services that are similar. Answer: 14) Traditional systems are likely to undercost complex products with lower production volume. Answer:15) For activity-based cost systems, activity costs are assigned to products in the proportion of the demand they place on activity resources. Answer:16) Unit-level measures can distort product costing because the demand for overhead resources may be driven by batch-level or product-sustaining activities. Answer: 17) Output unit-level costs cannot be determined unless you know how many units are in a given batch. Answer:18) Using multiple unit-level cost drivers generally constitutes an effective activity-based cost system. Answer:19) Misleading cost numbers are larger when unit-level assignments and the alternative activity-cost-driver assignments are proportionately similar to each other. Answer: 20) Availability of reliable data and measures should be considered when choosing a cost-allocation base. Answer:21) When designing a costing system, it is easiest to calculate total costs first, and then per-unit costs. Answer:22) ABC systems attempt to trace more costs as direct costs. Answer:23) ABC systems create homogeneous cost pools linked to different activities. Answer:24) ABC systems seek a cost allocation base that has a cause-and-effect relationship with costs in the cost pool. Answer:25) For service organizations, activity-based cost systems may be used to clarify appropriate cost assignments. Answer:26) ABC reveals opportunities for improving the way work is done. Answer:27) Activity-based management refers to the use of information derived from ABC analysis to analyze and improve operations. Answer: 28) Information derived from an ABC analysis might be used to eliminate nonvalue-added activities. Answer: 29) ABC costing systems are primarily for use in manufacturing and marketing and not for design engineering. Answer:30) Department-costing systems are a further refinement of ABC systems. Answer:31) ABC systems are useful in manufacturing, but not in the merchandising or service industries. Answer:32) Costing systems with multiple
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ACC 350 WK 11 Final Exam – StrayerPurchase here:
http://xondow.com/ACC-350-WK-11-Final-Exam-Strayer-ACC35010.htm
ACC 350 WK 11 Final Exam
1)
A top-selling product might actually result in losses for the company.
Answer:
2)
Companies that undercost products will most likely lose market share.
Answer:
3)
If companies increase market share in a given product line because their reported costs are less than their actual costs, they will become more profitable in the long run.
Answer:
4)
As product diversity and indirect costs increase, it is usually best to switch away from an activity based cost system to a broad averaging system.
Answer:
5)
If a company undercosts one of its products, then it will overcost at least one of its other products.
Answer:
6)
Direct costs plus indirect costs equal total costs.
Answer:
7)
When refining a costing system, a company should classify as many costs as possible as indirect costs.
Answer:
8)
In a homogeneous cost pool, all costs have a similar cause-and-effect relationship with the cost-allocation base.
Answer:
9)
Indirect labor and distribution costs would most likely be in the same activity-cost pool.
Answer:
10)
Activity-based costing helps identify various activities that explain why costs are incurred.
Answer:
11)
Direct tracing of costs improves cost accuracy.
Answer:
12)
A cost-allocation base is a necessary element when using a strategy that will refine a costing system.
Answer:
13)
An activity-based costing system is necessary for costing services that are similar.
Answer:
14)
Traditional systems are likely to undercost complex products with lower production volume.
Answer:
15)
For activity-based cost systems, activity costs are assigned to products in the proportion of the demand they place on activity resources.
Answer:
16)
Unit-level measures can distort product costing because the demand for overhead resources may be driven by batch-level or product-sustaining activities.
Answer:
17)
Output unit-level costs cannot be determined unless you know how many units are in a given batch.
Answer:
18)
Using multiple unit-level cost drivers generally constitutes an effective activity-based cost system.
Answer:
19)
Misleading cost numbers are larger when unit-level assignments and the alternative activity-cost-driver assignments are proportionately similar to each other.
Answer:
20)
Availability of reliable data and measures should be considered when choosing a cost-allocation base.
Answer:
21)
When designing a costing system, it is easiest to calculate total costs first, and then per-unit costs.
Answer:
22)
ABC systems attempt to trace more costs as direct costs.
Answer:
23)
ABC systems create homogeneous cost pools linked to different activities.
Answer:
24)
ABC systems seek a cost allocation base that has a cause-and-effect relationship with costs in the cost pool.
Answer:
25)
For service organizations, activity-based cost systems may be used to clarify appropriate cost assignments.
Answer:
26)
ABC reveals opportunities for improving the way work is done.
Answer:
27)
Activity-based management refers to the use of information derived from ABC analysis to analyze and improve operations.
Answer:
28)
Information derived from an ABC analysis might be used to eliminate nonvalue-added activities.
Answer:
29)
ABC costing systems are primarily for use in manufacturing and marketing and not for design engineering.
Answer:
30)
Department-costing systems are a further refinement of ABC systems.
Answer:
31)
ABC systems are useful in manufacturing, but not in the merchandising or service industries.
Answer:
32)
Costing systems with multiple cost pools are considered ABC systems.
Answer:
33)
Regarding department wide systems, the benefits of an ABC system must be balanced against its costs and limitations.
Answer:
34)
ABC systems always provide decision-making benefits that exceed implementation costs.
Answer:
35)
The primary costs of an ABC system are the measurements necessary to implement the system.
Answer:
36)
Simply because activity-based costing systems employ more activity-cost drivers, they provide more accurate product costs than traditional systems.
Answer:
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