DEVRY ACCT 434 Week 1 Quiz Activity Based Costing

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DEVRY ACCT 434 Week 1 Quiz Activity Based Costing

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• 1. Question  (TCO 1) The average cost data are
  for In-Sync Fixtures Company's (a retailer) only
  two product lines, Marblette and Italian
  Marble.Marblette Italian MarblePurchase volume
  20,000 1,000Purchase cost per unit 50
  250Shipments received 12 12

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• Hours used per shipment 5 3 These data were
  accumulated after a careful activity
  analysis.Currently, In-Sync Fixtures uses a
  traditional costing system with indirect costs
  allocated using purchased cost of goods as a
  basis. In-Sync Fixtures is considering refining
  the allocation of its receiving costs of 40,000.
  It realizes that the Italian Marble is heavier
  and requires more care than the Marblette but
  that the Marblette comes in larger volume.Which
  statement can be made using the results of the
  activity analysis performed by In-Sync Fixtures?
• 2. Question  (TCO 1) The allocation of indirect
  costs in an activity-based costing system
• 3. Question  (TCO 1) Evaluating customer
  reaction of the trade-off of giving up some
  features of a product for a lower price would
  best fit which category of management decisions
  under activity-based management?
• 4. Question  (TCO 1) A company produces three
  products if one product is overcosted then
• 5. Question  (TCO 1) To set realistic selling
  prices

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• 6. Question  (TCO 1) Different products consume
  different proportions of manufacturing overhead
  costs because of differences in all of the
  following EXCEPT
• 7. Question  (TCO 1) A well-designed,
  activity-based cost system helps managers make
  better decisions because information derived from
  an ABC analysis
• 8. Question  (TCO 1) Companies use ABC system
  information to
• 9. Question  (TCO 1) For service organizations
  that bill customers at a predetermined average
  rate, activity-based cost systems can help to
• 10. Question  (TCO 1) Danielle Company produces
  a special spray nozzle. The budgeted indirect
  total cost of inserting the spray nozzle is
  180,000. The budgeted number of nozzles to be
  inserted is 60,000. What is the budgeted indirect
  cost allocation rate for this activity?