Acc 350 Week 11 Final Exam Quiz – Strayer

ACC 350 Week 11 Final Exam Quiz – Strayer

Click on the Link Below to Purchase A+ Graded Course Material

http://budapp.net/ACC-350-Week-11-Final-Exam-Strayer-348.htm

Chapter 5 Through 10

Activity-Based Costing and Activity-Based Management

1)

A top-selling product might actually result in losses for the company.

2)

Companies that undercost products will most likely lose market share.

3)

If companies increase market share in a given product line because their reported costs are less than their actual costs, they will become more profitable in the long run.

4)

As product diversity and indirect costs increase, it is usually best to switch away from an activity based cost system to a broad averaging system.

5)

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

6)

Direct costs plus indirect costs equal total costs.

7)

When refining a costing system, a company should classify as many costs as possible as indirect costs.

8)

In a homogeneous cost pool, all costs have a similar cause-and-effect relationship with the cost-allocation base.

9)

Indirect labor and distribution costs would most likely be in the same activity-cost pool.

10)

Activity-based costing helps identify various activities that explain why costs are incurred.

11)

Direct tracing of costs improves cost accuracy.

12)

A cost-allocation base is a necessary element when using a strategy that will refine a costing system.

13)

An activity-based costing system is necessary for costing services that are similar.

14)

Traditional systems are likely to undercost complex products with lower production volume.

15)

For activity-based cost systems, activity costs are assigned to products in the proportion of the demand they place on activity resources.

16)

Unit-level measures can distort...