ACCT2301-002-Chap6-Additional-sp2009

ACCT2301-002-Chap6-Additional-sp2009 - 1 ACCT 2301 Spring...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 ACCT 2301 Spring Semester 2009 February 24, 2009 Practice Problems – Activity-Based Costing 1. If substantial batch-level or product-level costs exist, then overhead allocation based solely on a measure of volume such as direct labor-hours: A. is a key aspect of the activity-based costing model. B. will usually overcost high-volume products and undercost low-volume products. C. will usually overcost low-volume products and undercost high-volume products. D. None of the above are true. 2. The cost of leasing the office space for an advertising firm is an example of a: A. unit-level cost. B. batch-level cost. C. product-sustaining cost. D. facility-sustaining cost. 3. Which of the following is the primary goal of process-value analysis (or activity-based management)? A. To allocate overhead costs to products using volume-based drivers such as direct labor-hours. B. To increase non-value added costs. C. To eliminate virtually all overhead costs. D. To identify and eliminate activities that do not add value to goods and services. 4. Which of the following would probably be the most accurate measure of activity to use for allocating the costs associated with a factory's purchasing department? A.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

ACCT2301-002-Chap6-Additional-sp2009 - 1 ACCT 2301 Spring...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online