管理会计示范性双语课件习题04

1、.PAGE ：.；PAGE 35CHAPTER 4ACTIVITY-BASED COST MANAGEMENT SYSTEMSTRUE/FALSE1.Simply because activity-based costing systems employ more activity cost drivers, they provide more accurate product costs than traditional systems.a.Trueb.False2.A top-selling product might actually result in losses for the c

2、ompany.a.Trueb.False3.Traditional systems are likely to undercost complex products with lower production volume.a.Trueb.False4.Using multiple unit-level cost drivers generally constitutes an effective activity-based cost system.a.Trueb.False5.The Cooper Pen Company case in the text provides an illus

3、tration of why factories producing a more varied mix of products have higher costs than factories producing only a narrow range of products.a.Trueb.False6.Product lines that produce different variations (models, styles, or colors) often require specialized activities that translate into lower suppor

4、t costs for each product line.a.Trueb.False7.Specialized engineering drawings, quality specifications and testing, inventoried materials, and material control systems are examples of activities that equate to greater support costs. a.Trueb.False8.For activity-based cost systems, activity costs are a

5、ssigned to products in the proportion of the demand they place on activity resources. a.Trueb.False9.An activity-based costing system is necessary for costing services that are similar.a.Trueb.False10.ABC systems seek a cost allocation base that has a cause-and-effect relationship with costs in the

6、cost pool.a.Trueb.False11.In general, the selection of activity cost drivers requires making trade-offs between accuracy and the cost of measurement.a.Trueb.False12.The selection of activity cost drivers requires making choices related to the usage of transaction drivers, duration drivers, and inten

7、sity drivers.a.Trueb.False13.Reducing the number of production runs provides an economic benefit even though resources remain at the same level.a.Trueb.False14.An easy way to implement an effective activity-based costing system is to buy a prepackaged ABC software package.a.Trueb.False15.Activity-ba

8、sed costing helps to identify various activities that explain why costs are incurred.a.Trueb.False16.ABC reveals opportunities for improving the way work is done.a.Trueb.False17.Using actual driver quantities rather than practical capacity to assign product costs can lead to improvements in product

9、costs.a.Trueb.False18. Practical capacity is used as the denominator for activity driver calculations to avoid distortions caused by the assignment of excess capacity costs to the products. a.Trueb.False19.Unused capacity should be treated as a general cost to be shared across all product lines.a.Tr

10、ueb.False20.Cost driver rates calculated using actual work performed include an allocation for the cost of resources used and for unused capacity.a.Trueb.False21.Assigning selling and distribution costs to product lines is becoming more important because of customer requests for customized services.

11、a.Trueb.False22.The costs of marketing, selling, and distribution expenses have been decreasing rapidly in recent years.a.Trueb.False23. Customers who demand low prices and customized services are the most profitable customers.a.Trueb.False24.In general, service companies are ideal candidates for ac

12、tivity-based costing.a.Trueb.False25.For service organizations, activity-based cost systems clarify appropriate cost assignments and help to identify the profitability of various service activities. a.Trueb.False26.The most successful ABC projects occur when a clear business purpose exists for build

13、ing the ABC model.a.Trueb.False27.When the ABC system has a poor model design, ABC can still overcome the barriers to implementation and provide an effective system.a.Trueb.False28.An activity-based costing system is meant to perform the role of operational control as well as to provide the basis fo

14、r costing inventory for financial reporting.a.Trueb.False29.Even when the ABC project is initiated from the finance group, a multifunctional project team should be formed.a.Trueb.False30.ABC systems always provide decision-making benefits that exceed implementation costs.a.Trueb.FalseMULTIPLE CHOICE

15、31.Activity-based costing (ABC) can eliminate cost distortions because ABC:a.develops cost drivers that have a cause-and-effect relationship with the activities performed b.establishes multiple cost poolsc.eliminates product variationsd.recognizes interactions between different departments in assign

16、ing support costs 32.Traditional cost systems distort product costs because:a.they do not know how to identify the appropriate unitsb.excess capacity costs are ignoredc.they emphasize financial accounting requirementsd.they apply average support costs to each unit of product33.Unit-level cost driver

17、s in traditional cost systems distort product costs because they:a.assume that all support activities affect all productsb.recognize specific activities that are required to produce a productc.do not consistently record costsd.fail to measure the correct amount of total costs for all products34.Smal

18、ler cost distortions occur when the traditional systems unit-level assignments and the alternative activity cost driver assignments:a.are different in proportion to each other b.are similar in proportion to each otherc.are more different than aliked.use the same cost driver units 35.The use of unit-

19、related measures to assign support costs is more likely to:a.undercost high-volume productsb.undercost specialty low-volume productsc.undercost complex productsd.Both (b) and (c) are correct. 36.Misleading cost numbers are MOST likely the result of misallocating:a.direct material costsb.direct manuf

20、acturing labor costsc.support costsd.All of the above are correct.37.Overcosting of a product is MOST likely to result from:a.misallocating direct labor costsb.overpricing the productc.undercosting another productd.understating total product costs38.Undercosting a particular product may result in:a.

21、loss of market shareb.lower profitsc.operating inefficienciesd.understating total product costs39.It is important that the product costs reflect as much of the diversity and complexity of the manufacturing process so that:duct costs will reflect their relative consumption of resourcesb.better i

22、nformation related to resource constraints can be captured and communicated c.there is less likelihood of cost distortionsd.All of the above are correct.40.Activity-based costing (ABC) can eliminate cost distortions because ABC:a.develops cost drivers that directly link the activities performed to t

23、he products manufactured b.establishes multiple cost poolsc.employs capacity-related cost driversd.recognizes interactions between different departments in assigning support costs 41.Different products consume different proportions of support costs because of differences in all of the following EXCE

24、PT:a.sales pricesb.customers customization specificationsc.setup duct design42.Which of the following is a sign that an ABC system may be useful?a.There are small amounts of support costs.b.Products make diverse demands on resources because of differences in volume, process steps, batch si

25、ze, or complexity.c.Products a company is less suited to produce and sell show small profits.d.Operations throughout the plant are fairly similar.43.Units of production are most appropriate as a support assignment base when:a.it is a service department b.only one product is manufacturedc.direct labo

26、r costs are lowd.factories produce a complex and varied mix of products 44.Product lines that produce different variations (models, styles, or colors) often require specialized activities that translate into:a.lower support costs for each product lineb.decisions to drop product variationsc.more favo

27、rable direct labor cost ratiosd.more support costs for each product line 45.When a company manufactures a variety of complex products, several unit-level cost drivers can capture the complexity and diversity of processes:a.alwaysb.frequentlyc.infrequentlyd.never46.Greater support costs are associate

28、d with:a.specialized engineering drawingsb.quality specifications and testing c.inventoried materials and material control systemsd.All of the above are correct.47.A company produces three products; if one product is overcosted then:a.one product is undercostedb.one or two products are undercostedc.

29、two products are undercostedd.no products are undercosted48.The goal of a properly constructed ABC system is to:a.have the most accurate cost systemb.identify more indirect support costsc.develop the best cost system for an economically reasonable costd.have separate allocation rates for each depart

30、ment49.Designing an activity-based cost system includes:a.classifying as many costs as indirect costs as is feasibleb.creating as many cost pools as possiblec.identifying the activities involved in a processd.seeking a broader focus rather than detail50.Design of an activity-based cost system requir

31、es that:a.the job bid process be redesignedb.resource costs be linked to the activities performedc.the cost of activities be linked to cost objectsd.Both (b) and (c) are correct. 51.Which of the following statements about activity-based costing is NOT true?a.ABC is useful for allocating marketing an

32、d distribution costs.b.ABC is more likely to result in major differences from traditional costing systems if the firm manufactures only one product rather than multiple products.c.ABC seeks to distinguish batch-related, product-sustaining, and facility-sustaining costs, especially when they are not

33、proportionate to one another.d.ABC differs from traditional costing systems in that products are not cross-subsidized.THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 52 AND 53.Cannady produces six products. SR6 costs $168.00 per unit under their traditional cost system using one cost driver. An analy

34、sis of the activities and their costs revealed that three cost drivers would be used under the new ABC system. The new cost of SR6 was determined to be $178.00 per unit.52.The total amount of support costs assigned to product SR6 using the traditional method is _ the total amount assigned using ABC.

35、a.more than b.less thanc.identical tod.indeterminate from53.Given this change in the cost: a.SR6s costing results under the new system depend on the adequacy and quality of the estimated cost drivers and costs used by the system.b.SR6 will now command a higher sales price.c.SR6 has benefited from th

36、e new system.d.SR6 is definitely more accurately costed.THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 54 THROUGH 56.Merriman Company provides the following ABC costing information: ActivitiesTotal CostsActivity-cost driversAccount inquiry hours$400,00010,000 hoursAccount billing lines$280,0004,000,

37、000 linesAccount verification accounts$150,00040,000 accountsCorrespondence letters$ 50,0004,000 letters Total costs$880,000The above activities are used by Departments A and B as follows:Department ADepartment BAccount inquiry hours2,000 hours4,000 hoursAccount billing lines400,000 lines200,000 lin

38、esAccount verification accounts10,000 accounts8,000 accountsCorrespondence letters1,000 letters1,600 letters54.How much of the account inquiry cost will be assigned to Department A?a.$80,000b.$400,000c.$160,000d.None of the above is correct.55.How much of account verification costs will be assigned

39、to Department A?a.$30,000b.$37,500c.$150,000d.$10,00056.How much of the total costs will be assigned to Department A?a.$158,000b.$80,000c.$224,000d.$880,000THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 57 AND 58.Barnes Corporation manufactures two models of office chairs: a standard and a deluxe mo

40、del. The following activity and cost information has been compiled.Number ofNumber ofNumber ofProductSetupsComponentsDirect Labor HoursStandard228375Deluxe2812225Overhead costs$20,000$40,00057.Assume a traditional costing system applies the $60,000 of overhead costs based on direct labor hours. What

41、 is the total amount of overhead costs assigned to the standard model?a.$24,800b.$35,200c.$37,500d.$22,50058.Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, what is the total amount of overhead costs a

42、ssigned to the standard model?a.$24,800b.$35,200c.$37,500d.$22,500THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 59 THROUGH 63.Granberry Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:Cost PoolOverhead CostsCost driver

43、Activity levelSupervision of direct labor$320,000Direct labor-hours800,000Machine maintenance$120,000Machine-hours960,000Facility rent$200,000Square feet of area100,000Total overhead costs$640,000The accounting records show the Mossman Job consumed the following resources:Cost driverActual levelDire

44、ct labor-hours200Machine-hours1,600Square feet of area5059.If direct labor-hours are considered as the only overhead cost driver, what is the single cost driver rate for Granberry Enterprises?a.$0.50 per direct labor-hourb.$0.80 per direct labor-hourc.$0.40 per direct labor-hourd.$1.20 per direct la

45、bor-hour60.Using direct labor-hours as the only overhead cost driver, what is the amount of overhead costs allocated to the Mossman Job?a.$160b.$120c.$240d.$12561.If Granberry Enterprises uses the three activity cost pools to allocate overhead costs, what are the activity-cost driver rates for super

46、vision of direct labor, machine maintenance, and facility rent, respectively?a.$0.60 per dlh, $0.025 per mh, $0.80 per sq ftb.$1.25 per dlh, $0.25 per mh, $0.50 per sq ftc.$0.40 per dlh, $0.05 per mh, $0.20 per sq ftd.$0.40 per dlh, $0.125 per mh, $2 per sq ft62.Using the three cost pools to allocat

47、e overhead costs, what is the total amount of overhead costs to be allocated to the Mossman Job?a.$200b.$380c.$675d.$17063.Which method of allocation probably best estimates actual overhead costs used? Why?a.Single direct labor-hours cost driver, because it is best to allocate total costs uniformly

48、to individual jobs.b.Single direct labor-hours cost driver, because it is easiest to analyze and interpret.c.Three activity-cost drivers, because it best reflects the relative consumption of resources.d.Three activity-cost drivers, because product costs can be significantly cross-subsidized.THE FOLL

49、OWING INFORMATION APPLIES TO QUESTIONS 64 THROUGH 68.Ernsting Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2005, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 12 million pages.For 2005 Ernsting Printer

50、s has decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis:Cost pool

51、Manufacturing overhead costsActivity levelDesign changes$ 60,000300 design changesSetups320,0005,000 setupsInspections 40,0008,000 inspections Total manufacturing overhead costs$420,000During 2005, two customers, Wealth Managers and Health Systems, are expected to use the following printing services

52、:ActivityWealth ManagersHealth SystemsPages60,00076,000Design changes100Setups2010Inspections303864.What is the cost driver rate if manufacturing overhead costs are considered one large cost pool and are assigned based on 12 million pages of production capacity?a.$0.05 per pageb.$0.035 per pagec.$0.

53、35 per paged.$0.025 per page65.Using pages printed as the only overhead cost driver, what is the manufacturing overhead cost estimate for Wealth Managers during 2005?a.$2,500b.$1,750c.$2,100d.$3,00066.Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes,

54、setups, and inspections cost pools?a.$200 per change, $64 per setup, $5 per inspectionb.$180 per change, $160 per setup, $3.20 per inspectionc.$84 per change, $269 per setup, $21 per inspectiond.$143 per change, $76 per setup, $10 per inspection67.Using the three cost pools to allocate overhead cost

55、s, what is the total manufacturing overhead cost estimate for Wealth Managers during 2005?a.$6,850b.$3,250c.$3,430d.$5,09668.When costs are assigned using the single cost driver, number of pages printed, then a.Ernsting Printers will want to retain this highly-profitable customer. b.Wealth Managers

56、will likely seek to do business with competitors.c.Wealth Managers is unfairly overbilled for its use of printing resources.d.Wealth Managers is grossly underbilled for the job, while other jobs will be unfairly overbilled.THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 69 AND 70.Nichols, Inc., manuf

57、actures remote controls. Currently the company uses a plant-wide rate for allocating manufacturing overhead. The plant manager believes it is time to refine the method of cost allocation and has the accounting department identify the primary production activities and their cost drivers:ActivitiesCos

58、t driverAllocation RateMaterial handlingNumber of parts$2 per partAssemblyLabor hours$20 per hourInspectionTime at inspection station$3 per minuteThe current traditional cost method allocates support costs based on direct labor hours using a rate of $200 per labor hour.69.What are the manufacturing

59、support costs per remote control assuming the traditional method is used and a batch of 500 remote controls are produced? The batch requires 1,000 parts, 10 direct labor hours, and 15 minutes of inspection time.a.$2,000.00 per remote controlb.$0.25 per remote controlc.$2.00 per remote controld.$4.00

60、 per remote control70.What are the manufacturing support costs per remote control assuming an activity-based costing method is used and a batch of 50 remote controls are produced? The batch requires 100 parts, 6 direct manufacturing labor hours, and 2.5 minutes of inspection time.a.$4.00 per remote