Accounting_203_Chapter_3_Test

Accounting_203_Chapter_3_Test - ACCOUNTING 203 Chapter 3...

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ACCOUNTING 203 Chapter 3 Practice Test True and False Statements 1. Activity –based costing involves a two-stage allocation process in which overhead costs are first assigned to departments and then to jobs on the basis of direct labor-hours. 2. In the second-stage allocation in activity-based costing, costs that were not allocated in the first stage are assigned to the company’s most profitable products. 3. The activity rates in the activity-based costing are not intended to set targets for how quickly a task should be completed. 4. Under activity-based costing, overhead can be overapplied or underapplied. 5. In activity-based costing unit product costs computed for external financial reports include direct materials, direct labor, and manufacturing overhead. Multiple Choice Questions 6. Providing the power required to run production equipment is an example of a: A) Unit-level activity. B)
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Accounting_203_Chapter_3_Test - ACCOUNTING 203 Chapter 3...

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