1.Use ABC Costing to determine the overall costs of serving a bookkeeping client:
A:
2. Which of the following is a key characteristic of activity-based costing (ABC)?
A: Recognizing that different activities consume resources at different rates
3. ABC Manufacturing Company sells desks and other office equipment via e-commerce. When reviewing their budgeted cost, they’ve discovered the cost of the sales order processing activity is $600,000 and 80,000 sales orders are estimated to be processed.
A:
4. Using the single wide overhead rate of $251 to determine the overhead that should be allocated to all three desks individually.
A:
5. ABC Manufacturing Company produces three desks: computer, L-shaped and U-shaped. The current budgeted factory overheard cost is $6,494,625. The overhead is allocated to the products on the basis of direct labor hours. ABC Manufacturing Company has the following budgeted volume and direct labor hours per product:
A:
6. Which costing method is considered to be a more specific and more accurate way of assigning factory overhead to manufacturing goods versus using single factory or departmental rates?
A: activity-based costing
7. When determining the predetermined factory overhead rate, total budgeted factory overhead is divided by whitch of the following:
A:
8. In a manufacturing setting, the item being produced, which includes products, jobs, services, projects, clients, patients, customers, and contacts are considered to be the:
A: cost object
9. Activity-based costing identifies activities within the manufacturing process that occurs intermittently, such as purchasing, production scheduling, setups, moves, and invoicing?
A: True
10. In activity-based costing, what is the primary purpose of using multiple cost drivers?
A: To more accurately assign overhead costs to products based on specific activities