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Question 1

1.

A volume-based rate is an appropriate overhead application base when: Several well-differentiated products are manufactured. Direct labor costs are large. Direct material costs are large relative to direct labor costs incurred. Only one product is manufactured. Manufacturing is process-based.
1 points

Question 2
1.

Customer lifetime value is a type of analysis used to: Assess the ethical practices of each salesperson-customer relationship. Assess the current profit potential of a customer. Assess the long term profit potential of a customer. Assess the current profit potential of all the firm's customers. Assess the long term profit potential of all the firm's customers.
1 points

Question 3
1.

In an organization that makes furniture, which of the following is a high value-added activity? Using direct materials in production. Inspecting production. Storing finished goods inventory. Moving work-in-process inventory between work stations. Reworking the product to repair defects.
1 points

Question 4
1.

Multistage ABC is used when: There are many departments in the organization. Management wants a higher level of accuracy from the ABC calculations. There are complex relationships among the activities. To simplify the ABC calculations. There is no such thing as Multistage ABC.
1 points

Question 5

1.

National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders.

National uses a volume-based costing system to apply factory overhead based on direct labor dollars. The unit prime costs of each product were as follows:

National's controller had been researching activity-based costing and decided to switch to it. A special study determined National's two products have the following budgeted activities:

Using the firm's volume-based costing, applied factory overhead per unit for the High F model is (rounded to the nearest cent): $61.32. $65.43. $43.42. $45.99. $54.04.
3 points

Question 6
1.

National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders.

National uses a volume-based costing system to apply factory overhead based on direct labor dollars. The unit prime costs of each product were as follows:

National's controller had been researching activity-based costing and decided to switch to it. A special study determined National's two products have the following budgeted activities:

Using activity-based costing, applied quality control factory overhead for the High F model per unit is (rounded to the nearest cent): $6.13. $11.86. $16.28. $32.46. $66.73.
3 points

Question 7
1.

National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders.

National uses a volume-based costing system to apply factory overhead based on direct labor dollars. The unit prime costs of each product were as follows:

National's controller had been researching activity-based costing and decided to switch to it. A special study determined National's two products have the following budgeted activities:

Using activity-based costing, total overhead per unit of the High F model is (rounded to the nearest cent): $42.61. $45.99.

$61.32. $66.73. $168.00.


3 points

Question 8
1.

Overhead costs are allocated to cost objects in an activity-based costing system in the following manner: Overhead costs are traced to departments, then costs are traced to products. Overhead costs are traced to activities, then costs are traced to products. Overhead costs are traced to activities, then costs are traced to departments and then allocated to products. Overhead costs are traced from resources to cost objects. None of the above.
1 points

Question 9
1.

Which of the following is a batch-level cost driver? Output units. Number of engineering change orders. Number of materials handling transactions. Square feet of plant area occupied. Number of employees.
1 points

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