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ch04 - CHAPTER 4 Activity-Based Costing ASSIGNMENT...

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CHAPTER 4 Activity-Based Costing ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Exercises A Problems B Problems * 1. Recognize the difference between traditional costing and activity-based costing. 1, 2, 3, 4, 5 1, 2 1, 2, 3, 4, 5, 6, 12, 13 1A, 3A, 4A, 5A 1B, 3B, 4B, 5B * 2. Identify the steps in the development of an activity- based costing system. 7 * 3. Know how companies identify the activity cost pools used in activity-based costing. 9 7, 8 * 4. Know how companies identify and use cost drivers in activity-based costing. 6, 10, 11, 12 3, 4, 5, 6, 7, 12 1, 3, 4, 5, 6, 8, 9, 10, 11, 12, 13 1A, 2A, 3A, 4A, 5A 1B, 2B, 3B, 4B, 5B * 5. Understand the bene- fits and limitations of activity-based costing. 13, 14, 15 11 * 6. Differentiate between value-added and non- value-added activities. 8, 16, 17 8, 9 12, 13, 14, 15, 16 1A, 5A 1B, 5B * 7. Understand the value of using activity levels in activity-based costing. 19 10, 11, 12 17, 18 * 8. Apply activity-based costing to service industries. 18 9, 10 16 5A 5B *9. Explain just-in-time (JIT) processing. 20 * Note: All asterisked Questions, Exercises, and Problems relate to material contained in the appendix * to the chapter. © 2008 For Instructor Use Only 4-1
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ASSIGNMENT CHARACTERISTICS TABLE Problem Number Description Difficulty Level Time Allotted (min.) 1A Assign overhead using traditional costing and ABC; compute unit costs; classify activities as value- or non-value-added. Moderate 35 45 2A Assign overhead to products using ABC and evaluate decision. Moderate 25 35 3A Assign overhead costs using traditional costing and ABC; compare results. Moderate 35 45 4A Assign overhead costs using traditional costing and ABC; compare results. Moderate 40 50 5A Assign overhead costs to services using traditional costing and ABC; compute overhead rates and unit costs; compare results. Moderate 35 45 1B Assign overhead using traditional costing and ABC; compute unit costs; classify activities as value- or non-value-added. Moderate 35 45 2B Assign overhead to products using ABC and evaluate decision. Moderate 25 35 3B Assign overhead costs using traditional costing and ABC; compare results. Moderate 35 45 4B Assign overhead costs using traditional costing and ABC; compare results. Moderate 40 50 5B Assign overhead costs to services using traditional costing and ABC; compute overhead rates and unit costs; compare results. Moderate 35 45 © 2008 For Instructor Use Only 4-2
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BLOOM’S TAXONOMY TABLE © 2008 For Instructor Use Only 4 -3 Correlation Chart between Bloom’s Taxonomy, Study Objectives and End-of-Chapter Exercises and Problems Study Objective Knowledge Comprehension Application Analysis Synthesis Evaluation * 1. Recognize the difference between traditional costing and activity-based costing. Q4-1 Q4-2 Q4-3 Q4-4 Q4-5 BE4-1 BE4-2 E4-1 E4-2 E4-3 E4-4 E4-5 E4-6 E4-12 E4-13 P4-1A P4-4A P4-5A P4-1B P4-4B P4-5B E4-1 E4-2 E4-3 E4-4 E4-5 E4-6 P4-3A P4-4A P4-5A P4-3B P4-4B P4-5B * 2. Identify the steps in the development of an activity- based costing system.
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