You are watching: Which of the following is a benefit of activity-based costing?
When gathering activity data, which of the adhering to would certainly not be a question that ABC task team members commonly ask employees or managers?A. Wbelow the activity takes placeB. Value the activity has for the customerC. Time invested perdeveloping the activityD. Reresources compelled for the activity
Which one of the adhering to is not a unit-level price driver? A. Direct product dollars.B. Direct labor hrs.C. Machine hrs.D. Production orders.
Which of the following tasks is a facility-level activity? A.Depreciation on a extremely specialized item of manufacturing tools.B. Product style.C. Plant monitoring salaries.D. Direct labor.
A firm using a volume-based overhead assignment (allocation) method will certainly tend to: A. Overstate the price of low volume products.B. Understate the expense of all commodities.C. Understate the cost of low volume commodities.D. Understate the cost of high volume assets.
A firm has many kind of assets, some produced in an automated manufacturing process and also some produced in a hands-on manufacturing process. Using direct labor hrs to assign production overhead to a product made through a highly automated procedure is most likely to: A. Underuse overhead to the duration.B. Understate overhead of the product.C. Overstate overhead of the product.D. Overuse overhead to the duration.
A volume-based rate is an appropriate overhead application base when: A. Direct labor costs are large.B. Direct material prices are huge loved one to straight labor costs incurred.C. Only one product is made.D. Several well-differentiated assets are produced.
Activity-based costing systems: A. Are much less facility and therefore much less costly than volume-based systems.B. Can be provided in production firms just.C. Have separate overhead prices for each task.D. Accumulate overhead prices by departments.
Which of the adhering to is a benefit of activity-based costing? A. More centralized manufacturing procedures.B. Reduced overhead costs.C. Facilitate better product pricing decisions.D. More accurate procedures of production volume.
Which of the adhering to is a advantage of activity-based costing? A. More streamlined production procedures.B. Reduced overhead expenses.C. Facilitate better product pricing decisions.D. More accurate procedures of production volume.
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In the context of ABC, cross-subsidization refers to: A. Efforts to raised coordination among department heads.B. Production departments subsidizing each other.C. Cross-marketing products lines, which influence customer profitcapacity.D. Costing inaccuracies which impact the family member profitability of products.
A company estimates that warranty price will certainly be 4% of sales. The company"s sales for the present duration are $218,000. The present period"s enattempt to record the warranty price is: