Accounting

Out of 10 questions, you answered 10 correctly with a final grade of 100% |

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| 10 correct (100%) | | |

| 0 incorrect (0%) | | |

| 0 unanswered (0%) | | |

Your Results: |

The correct answer for each question is indicated by a . |

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1 CORRECT | |

Which of the following statements is correct? |

| | A) | Activity-based costing uses a number of activity cost pools, each of which is allocated to products on the basis of direct labor-hours. |

| | B) | Activity rates in activity-based costing are computed by dividing costs from the first-stage allocations by the activity measure for each activity cost pool. |

| | C) | An activity-based costing system is generally easier to implement and maintain than traditional costing system. |

| | D) | One of the goals of activity-based management is the elimination of waste by allocating costs to products that waste resources. |

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Feedback:The correct answer is B (Learning Objective 1):

Rather than using a single allocation base (such as direct labor-hours), activity-based costing uses a number of allocation bases for assigning costs to products (thus statement A is false). Generally, an activity-based costing system is harder (rather than easier) to implement and maintain than a traditional costing system (thus statement C is false). Rather than eliminating waste by allocating costs to products that waste resources, activity-based management is a management approach that focuses on managing activities as a way of eliminating waste and reducing delays and defects (thus statement D is false). Statement B is true. |

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2 CORRECT | |

All of the following are examples of batch-level activities except: |

| | A) | Clerical activity associated with processing purchase orders to produce an order for a standard product. |

| | B) | Purchase order processing. |

| | C) | Setting up...