CH 4 Flashcards
1
Q
What are the trends in Product Costs?
A
DL decreasing; MOH increasing; DM constant.
2
Q
Name four steps of activity levels from the most general to most precise.
A
Facility Level, Product Level, Batch Level, & Unit Level.
3
Q
Facility Level
A
Activities and costs incurred no matter how many units, batches or products produced.
4
Q
Product Level
A
Activities and costs incurred for a particular product, regardless of units or batches produced.
5
Q
Batch Level
A
Activities and costs incurred for every batch, regardless of number of units produced.
6
Q
Unit Level
A
Activities and costs incurred for
every unit.
7
Q
Activity Based Costing
A
Multiple costing pools, several processes, and normal costing for each pool.
8
Q
Four Steps of ABC
A
- Identify and classify the activities related to the company’s products or services.
- Estimate the costs associated with each activity.
- Calculate a cost-driver rate for each activity.
- Assign activity costs to products using the cost-driver rate.
9
Q
What makes up Production Costs?
A
Labor, Materials, and MOH.
10
Q
A
