Chapter 5

Question

A well-designed, activity-based cost system helps managers make better decisions because information derived from an ABC analysis ________.

Answer 1

can be used to eliminate nonvalue-added activities

Answer 2

is easy to analyze and interpret

Answer 3

takes the choices and judgment challenges away from the managers

Answer 4

emphasizes how managers can achieve higher sales

Answer 5

costing individual jobs

Answer 6

department indirect-cost rates

Answer 7

multiple-cost pools

Answer 8

individual activities

Answer 9

Significant amounts of indirect costs are allocated using multiple cost pools.

Answer 10

Products make similar demands on resources because of similarities in volume, process steps, batch size, or complexity.

Answer 11

Many indirect costs are described as batch-level costs, product-sustaining costs, or facility-sustaining costs.

Answer 12

Operations staff disagrees with accountants about the costs of manufacturing and marketing products and services.

Answer 13

a single product is produced in bulk

Answer 14

its benefits exceed its implementation costs

Answer 15

it traces more costs as direct costs

Answer 16

production process is labor-intensive

Answer 17

exists when one overcosted product results in more than one other product being overcosted

Answer 18

means that if a company undercosts more than one of its products, it will overcost more than one of its other products

Answer 19

means that if a company undercosts one of its products, it will overcost at least one of its other products

Answer 20

exists only when one overcosted product results in all other products being overcosted

Zusammenfassung der Ressource

	Erstellt von Andrew Knifer vor mehr als 8 Jahre