Product costing provides useful cost information for all the following except:
A. Both manufacturing and non-manufacturing firms.
B. For non-manufacturing firms.
C. Management planning, cost control, and performance evaluation
The contribution income statement would require a firm to:
A. Separate costs into fixed and variable categories.
B. Separate revenue into different categories.
C. Round off amounts to the nearest dollar.
D. Ignore some estimated fixed exp
Which of the four types of cost drivers-activity-based, volume-based, structural and executional-are often
best related to linear cost estimation methods?
A. Activity-based only.
B. Activity-based and volume-based.
C. Structural and volum
Activity Based Management & Activity Based Costing
Activity Based Management
Focuses on activities during production and performance process
o Activity is repetitive performed to for business to function
o Improved customer val
Which of the following does not represent a main focus of cost management information?
A. Strategic management.
B. Performance measurement.
C. Planning and decision making.
D. Preparation of financial statements.
E. Internal audit and con
Since indirect cost cannot be conveniently or economically traced directly to a cost pool or cost object,
the management accountant will:
A. Assign them by means of cost allocation.
B. Assign them where needed.
C. Assign them randomly to
1. The objectives of cost allocation are to:
A. Motivate, provide incentives, and determine fair rewards.
B. Accurately define, divide and spread direct costs.
C. Value, measure, and interpret cost data.
D. Connect, communicate, and discern
In SWOT analysis, strengths and weaknesses are most easily identified by looking:
A. At the firm as a potential customer.
B. Inside the firm at its specific resources.
C. At the firm's competition.
D. At the firm's product.
E. Outside the
The major limitation of volume-based costing systems is the use of volume-based:
Volume-based rates produce inaccurate product cost when:
A. A large share of factory o
The master budget for a given accounting period has all the following except:
A. It consists of a series of operating and financial budgets.
B. It is considered the "grand plan of action" for the upcoming period.
C. It culminates in a set
Firms should use a process costing system when they produce products that:
A. Are semi-homogeneous.
B. Pass through a series of inspection points.
C. Pass through a series of manufacturing departments.
D. Have a small batch size.