Activity Based Costing Flashcards
Mass customization can be achieved through the use of ________.
Flexible manufacturing systems
Process value analysis is a key component of activity-based management that links product costing and _________.
Continuous improvement
A ________ method first traces costs to a department and then to products.
Traditional costing (cost to department to product)
A _______ method first traces costs to activities and then to products
Actvitiy-based costing (cost to activity to product)
Symptoms of an outdated cost system include the following, EXCEPT:
A. Competitors’ prices appear unrealistically low.
B. Products that are difficult to produce show little profits.
C. The company has a highly profitable niche all to itself.
D. Product costs change because of changes in financial reporting regulations.
B. If it shows high profits, lagot na.
Traditional overhead cost allocations result in…
High-volume products being assigned too much overhead, and low-volume products being assigned too little overhead.
Traditionally, managers have focused cost-reduction efforts on…
Costs
Which of the following is NOT a sign of poor cost data?
A. Competitors’ prices for high-volume products appear much too high
B. Competitors’ prices for low-volume products appear much too high.
A.
ABC differs from GAAP in that ABC…
does not define product costs in the same manner as GAAP.
(T/F) Assembling is a non-value-added activity.
False
The ideal standard quantity for non-value added activities is
Practical capacity
If JIT manufacturing is used, maintenance of the production equipment would be classified as a
Cell-level activity
Proper sequence of cost tracing in ABC
(1) Cost driver
(2) Cost pool
(3) Activity driver
(4) Cost object
Activities that drive resource requirements
Resource drivers
In ABC, preliminary cost allocations assign costs to ______
Activities
