App08A - Appendix 8A, ABC Action Analysis 8B)LO7: ABC...

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Appendix 8A, ABC Action Analysis Question Type Difficulty LO1: ABC concepts LO2: First-stage allocation LO3: Activity rates LO4: Second-stage allocation LO5: Product and customer margins LO6: Action Analysis (Appendix 8A) LO7: ABC absorption costing (Appendix 8B) Other topics Professional Exam Adapted ID Origin CMA/CPA origin 1 T/F M x New,5/23/01,H E.N. 2 Conceptual M/ C M x New, 5/24/01, G E.N. 3 Conceptual M/ C M x New, 5/24/01, K Authors 4 Conceptual M/ C M x New, 5/24/01, O E.N. 8A- 1 5-7 Multipart M/C M- H x New,5/4/98,E10 E.N. 8A- 2 8- 10 Multipart M/C M- H x New,5/4/98,G10 E.N. 11 Problem H x New,5/5/98,I5 E.N. 12 Problem M x New,5/5/98,H5 E.N. 13 Problem M x New,5/5/98,G5 E.N. 14 Problem M x New,5/6/98,J5 E.N. 8A-1
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Appendix 8A, ABC Action Analysis True / False Questions 1. An action analysis report reconciles activity-based costing product costs with traditional product costs based on direct labor. True False Multiple Choice Questions 2. If a cost object such as a product or customer has a negative yellow margin, then: A. its green margin will be positive. B. its green margin may be positive, negative, or zero. C. its green margin will be negative. D. its green margin will be zero. 3. If a cost object such as a product or customer has a positive green margin, then: A. its red margin will be positive. B. its red margin may be either positive, negative, or zero. C. its red margin will be negative. D. its red margin will be zero. 4. If a cost object such as a product or customer has a positive red margin, then: A. its yellow margin will be positive. B. its yellow margin may be positive, negative, or zero. C. its yellow margin will be negative. D. its yellow margin will be zero. 8A-2
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Appendix 8A, ABC Action Analysis Eschbach Company is a wholesale distributor that uses activity-based costing for all of its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity based costing system: The "Other" activity cost pool consists of the costs of idle capacity and organization- sustaining costs. The amount of activity for the year is as follows: 5. What would be the total overhead cost per order according to the activity based costing system? In other words, what would be the overall activity rate for the filling orders activity cost pool? (Round to the nearest whole cent.) A. $42.00 B. $77.00 C. $59.50 D. $68.25 8A-3
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Appendix 8A, ABC Action Analysis 6. What would be the total overhead cost per customer according to the activity based costing system? In other words, what would be the overall activity rate for the customer support activity cost pool? (Round to the nearest whole dollar.) A. $4,760 B. $5,600 C. $4,340 D. $3,920 7. To the nearest whole dollar, how much wages and salaries cost would be allocated to a customer who made 6 orders in a year? A. $2,739
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This note was uploaded on 11/10/2010 for the course ACCOUNTING acc taught by Professor Sign during the Spring '10 term at S. Alabama.

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App08A - Appendix 8A, ABC Action Analysis 8B)LO7: ABC...

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