QUESTION 24 Which of the following statements is true? 1. When designing an activity-based costing system, related activities are frequently combined to reduce the amount of detail and record-keeping cost. 2. Activity-based costing uses a number of activity cost pools, each of which is allocated to products on the basis of direct labor-hours. 3. Activity-based costing involves a two-stage allocation process in which overhead costs are first assigned to activity cost pools and then allocated to products using activity measures. 4. The challenge in designing an activity-based costing system is to identify all of the activities that explain the variation in overhead costs. Statements I, II, and III are true. Statements II and III are true. All of the statements are true. Statements I and III are true.

QUESTION 24 Which of the following statements is true? 1. When designing an activity-based costing system, related activities are frequently combined to reduce the amount of detail and record-keeping cost. 2. Activity-based costing uses a number of activity cost pools, each of which is allocated to products on the basis of direct labor-hours. 3. Activity-based costing involves a two-stage allocation process in which overhead costs are first assigned to activity cost pools and then allocated to products using activity measures. 4. The challenge in designing an activity-based costing system is to identify all of the activities that explain the variation in overhead costs. Statements I, II, and III are true. Statements II and III are true. All of the statements are true. Statements I and III are true.

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Description: Question 24? 84-martVine T...sQUESTION 24Which of the following statements is true?1. When designing an activity-based costing system, related activities arefrequently combined to reduce the amount of detail and record-keeping cost.2. Activity-based

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 13MC: Activity-based costing systems: A. use a single predetermined overhead rate based on machine hours...

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Which is not a step In activity-based costing? A. identify the activities performed by the organization B. identify the cost driver(s) associated with each activity C. compute a cost rate per production D. assign costs to products by multiplying the cost driver rate by the volume of the cost driver units consumed by the product
Which of the following statements is true of activity-based costing? O a. Activities are the cost objects of the second stage of ABC. O b. ABC ignores the allocation of storage costs. O c. ABC is more likely to result in big differences from a traditional costing system if the business makes only one product rather than multiple products. O d. An activity cost pool collects costs related to the same activity. DUS PAGE NEXT PAGE e here to search 11:38 O a dx ENG 22-05-2021 hp రు 144 ort sc delete end home 4 7\ - backspace num lock E 8. home F K enter pause M ↑ shift end alt ctrl
QUESTION 9 Put the following steps in an Activity-Based-Costing system in the proper order. v Calculate a predetermined overhead rate. Identify a logical cost driver as an allocation base for each cost pool. Allocate the costs to the cost object by multiplying the predetermined overhead rate by the actual amount of the cost driver used by the cost object. v Separate total overhead into cost pools.
18. Which is not a step in activity-based costing? Group of answer choices identify the activities performed by the organization identify the cost driver(s) associated with each activity assign costs to products by multiplying the cost driver rate by the volume of the cost driver units consumed by the product compute a cost rate per production
8. Identify the correct sequence of the Activity Based Costing approach I. Identify the main activities II. Create cost drivers III. Calculate the activity cost driver rate IV. Create cost pool V. Charge costs of activities to products a. I, III, IV, II, V b. I, IV, II, III, V c. II, I, III, IV, V d. I, II, III, IV, V
Which of the following statements is true? O The first step in activity-based costing is to assign overhead costs to products using cost drivers ABC usually results in less appropriate management decisions Activity-based costing allocates overhead to multiple activity cost pools and assigns the cost pools to products using cost drivers O Traditional costing systems use multiple predetermined overhead rates
8 Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: Processing Supervising Other Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: Product MØ Product M5 Total $ 5,520 $ 34,200 $ 12,000 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Sales (total) Direct materials (total) Direct labor (total) Multiple Choice MHS (Processing) 10,925 575 11,500 Product Mº $ 85,500 $ 30,100 $ 29,400 What is the product margin for Product M5 under activity-based costing? O $26,000 Batches (Supervising) 750 750 1,500 Product M5 $ 97,900 $ 33,000 $…
Please answer with reason for all why the option is correct and why the other options are incorrectPlease answer correct otherwise skip it 4. Which of the following statements is true? An activity measure in activity-based costing expresses how much of an activity is carried out and it is used as the allocation base for assigning overhead costs to products and services. Activity-based management involves focusing on activities to eliminate waste, decrease processing time, and reduce defects. An activity-based costing system is generally more difficult to set up and run than a traditional cost system. Multiple Choice Statements I and II are true. Statements II and III are true. All of the statements are true. None of the statements are true.
! Required information [The following information applies to the questions displayed below.] For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called LEC 90 that has become increasingly popular. The LEC 90 is a more complex product, requiring 0.60 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The LEC 40 requires only 0.20 hours of direct labor time per unit and only a small amount of machining. Manufacturing overhead costs are currently assigned to products on the basis of direct labor-hours. Despite the growing popularity of the company's new LEC 90, profits have been declining steadily. Management is beginning to believe that there may be a problem with the company's costing system. Direct material and direct labor costs per unit are as follows: Direct materials Direct labor…
Refer to CASE 2 (Company B), If activity-based costing is used, what would be the activity rate for the Setups activity ?cost pool None of the amounts given a O $50 b O $25 .c O $5 d O
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