Cost Test 2

Question 1

Activities

Answer 1

Events, tasks, or units of work with a specified purpose.

Question 2

Cost Pools

Answer 2

Grouping of individual cost items.

Question 3

Cost Drivers

Answer 3

Variable, such as the level of activity or volume, that causally affects costs over a given time span.

Question 4

Cross Subsidization

Answer 4

If a company undercosts one of its products, it will overcost at least one of its other products.

Question 5

Output Unit Level Costs

Answer 5

Costs of activities performed on each individual unit of a product or service.

Question 6

Under Costed

Answer 6

Product consumes a high level of resources per unit but is reported to have a low cost per unit.

Question 7

Product Sustaining Costs

Answer 7

Costs of activities undertaken to support individual products or services regardless of the number of units or batches in which the units are produced.

Question 8

Facility Sustaining Costs

Answer 8

Costs of activities that managers cannot trace to individual products or services but that support the organization as a whole.