question - (a) identify cost drivers. (b) assign overhead...

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Activity-based costing (ABC): (a)   can be used only in a process cost system. (b)   focuses on units of production. (c)   focuses on activities performed to produce a  product. (d)   uses only a single basis of allocation. Answer: (c)  focuses on activities performed to produce a product. Activity-based costing: (a)   is the initial phase of converting to a just-in-time  operating environment. (b)   can be used only in a job order costing system. (c)   is a two-stage overhead cost allocation system that  identifies activity cost pools and cost drivers. (d)   uses direct labor as its primary cost driver. Answer: (c)  is a two-stage overhead cost allocation system that identifies activity cost pools and cost drivers. The first step in the development of an activity-based costing system is:
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Unformatted text preview: (a) identify cost drivers. (b) assign overhead costs to products. (c) identify and classify activities and allocate overhead to cost pools. (d) compute overhead rates. Answer: (c) identify and classify activities and allocate overhead to cost pools. Any activity that causes resources to be consumed is called a: (a) just-in-time activ (b) facility-level acti (c) cost driver. (d) non–value-added Answer: (c) cost driver. Which of the following would be the best cost driver for the assembling cost pool? (a) Number of product lines. (b) Number of parts. (c) Number of orders. (d) Amount of square footage. Answer: (b) Number of parts....
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This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.

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question - (a) identify cost drivers. (b) assign overhead...

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