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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: 4. If a cost object such as a product or customer has a positive red margin, then: 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.) 8A-3
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Appendix 8A, ABC Action Analysis
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