2010-08-01_203451_Jamerson (1)

2010-08-01_203451_Jamerson (1) - 1. (TCO 1) Activity-based...

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1. (TCO 1) Activity-based costing systems provide better product costs when they: (Points: 5) always yield more accurate product costs than traditional systems employ more activity-cost drivers employ fewer activity-cost drivers identify and cost more indirect cost differences among products 2. (TCO 1) Merriamn Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry hours$400,000 10,000 hours Account billing lines $280,000 4,000,000 lines Account verification accounts $150,000 40,000 accounts Correspondence letters $ 50,000 4,000 letters Total costs $880,000 The above activities are used by Department A and B as follows: Department A Department B Account inquiry hours 2,000 hours 4,000 hours Account billing lines 400,000 lines 200,000 lines Account verification accounts 10,000 accounts 8,000 accounts Correspondence letters 1,000 letters 1,600 letters How much of account verification costs will be assigned to Department A? (Points: 5) $14,000 $150,000 $10,000
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2010-08-01_203451_Jamerson (1) - 1. (TCO 1) Activity-based...

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