Activity-Based Costing and
September 21st 2016
Absorption Costing and PDOH
Absorption Costing uses a PDOH to allocate
MOH to units based on cost driver activity.
For most modern manufacturing firms, th
ATC 5-1 (Pg. 246)
1. (Using ABC to improve product pricing) Answer the four questions posed in the case. Include
in your answer the basic differences between volume based (traditional) overhead
application procedures and the ABC method.
a. Determine the g
Unit 1 Complete
1. Answer (a) and (b) in problem 1-26B.
a. Explain why the internal control practice of separation of duties failed to prevent
the fraudulent reporting.
i. Separating duties is one of a number of common internal control
practices used by b
What is a job order cost system? Describe a situation in which you would use job order
cost information. What type of information is useful in making your decision? Based on
your reading and outside research, please communicate your own understand
1. Complete the balance sheet by supplying the missing amounts
2. Why are externally presented reports required to be prepared according to generally
accepted accounting principles while internally presented managerial accounting
reports are not?
Quiz on Job Costing
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1. The two basic types of cost accounting systems are
a job order and job accumulation systems.
job order and process cost systems.
0) process cost and batch systems.
(:1) job order and batch systems
Quiz on Activity Based Costing
1. Which of the following is $393. typical of traditional costing systems?
a) Use of a single predetermined overhead rate.
1; b) Use of direct labor hours or direct labor cost to assign overhead.
1 c) Assumption of correlati
Quiz on Cost Behavior
1. A variable cost is a cost that
a) varies per unit at every level of activity.
b) occurs at various times during the year.
GE varies in total in proportion to changes in the level of activity.
d) may or may not be incurred, dependi
Quiz on Standard Costing
1. What is a standard cost?
A) The total number of units times the budgeted amount expected
B) Any amount that appears on a budget
C) The total amount that appears on the budget for product costs
2. The difference between a budget
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ACCT 607: Quiz on Prot Flaming . . . . . MW
1. Why are budgets useful in the planning process?
a) They provide management with information about the company's past performance.
@ They help communicate goals and provide a basis for evaluat
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1. A process cost accounting system is most appropriate when
a) a variety of different products are produced, each one requiring different types of
materials, labor, and overhead. 1
b) the focus of attention is on a particular job or orde
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Quiz on Financial Statement Analysis 1
1. Which one of the following is not a characteristic generally evaluated in analyzing nancial
2. Horizontal analysis evaluat
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Quiz on Flexible Budgeting W O J
1. If costs are not responsive to changes in activity level, then these costs can be best described as
2. A static budget is appropriate for '
a) variable overhead costs.
For an activity base to be useful in cost behavior analysis,
the activity should always be stated in terms of units.
the activity level should be constant over a period of time.
the activity should always be stated in dollars.
there should be a correlatio
Hayward Manufacturing Company developed the following data:
Beginning work in process inventory
Direct materials used
Cost of goods manufactured
Ending work in process
D. Michael Prushnok
Part A: CSR
a) Provide your definition of what is mean by CSR
Corporate Social Responsibility (CSR) is a companys ability to make environmentally
conscious decisions and conduct fair labor practices, while giving back to the
BUSACC 0040 Fall 2016
Quiz 1 (Version A)
1. Classifying costs (Total 5 points; 1 point each)
Fairwings manufactures and sells radar sets for commercial aircrafts. For each cost below,
indicate whether it would most likely be classified as direct lab
BUSACC, Fall 2016
Silicon Valley supplied the following data for use in its activity-based costing (ABC)
Wages and salaries
Other overhead costs
Total overhead costs
Activity Cost Pool
Direct labor support
Define cost behavior. Define and discuss how variable cost, fixed cost and mixed cost is
different. Provide an example of each. Based on your reading and outside research,
please communicate your own understanding of the requirements. Citations an