ACCT 434 WEEK 1 QUIZ

ACCT 434 WEEK 1
Question
(TCO 1) The allocation of indirect costs in an activity-based costing system
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(TCO 1) Evaluating customer reaction of the trade-off of giving up some features of a product for a lower price would best fit which category of management decisions under activity-based management?
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(TCO 1) Overcosting of a product is MOST likely to result from:
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(TCO 1) The MOST likely example of a batch-level cost is:
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(TCO 1) Different products consume different proportions of manufacturing overhead costs because of differences in all of the following EXCEPT:
(TCO 1) Activity-based management (ABM) includes decisions about all EXCEPT
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(TCO 1) The UNIQUE feature of an ABC system is the emphasis on:
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(TCO 1) One department indirect-cost rate is sufficient when:
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(TCO 1) Danielle Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $180,000. The budgeted number of nozzles to be inserted is 60,000. What is the budgeted indirect cost allocation rate for this activity?
Question:
Based on the information provided for problem 1, determine the activity-cost-driver rate for packaging costs
Question:
Based on the information provided for problem 1, using the ABC system, for the sugar cookie, compute the estimated overhead costs per thousand cookies
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Based on the information provided for problem 1, using the ABC system, for the sugar cookie, compute the estimated operating profit per thousand cookies
Question:
Based on the information provided for problem 1, using a traditional system (with direct labor hours as the overhead allocation base) for the sugar cookie, compute the estimated overhead costs per thousand cookies
Question:
Based on the information provided for problem 1, using a traditional system (with direct labor hours as the overhead allocation base) for the sugar cookie, compute the estimated operating profit per thousand cookies
Question:
Based on the information provided for problem 1, explain the difference between the profits obtained from the traditional system and the ABC system. Which system provides a better estimate of profitability? Why?
Question:
Problem 2, essay question: What is activity-based management and how can it be used to improve the profitability of a company?