Activity-Based Management and Costing Quiz

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following is a learning objective of the chapter?

  • Identify value-added versus non-valueadded activities (correct)
  • Explain how costs are computed using activity-based costing
  • Describe the types of management information provided by an activity-based costing/management system
  • Explain when it is appropriate to use activity-based costing

What is the focus of activity-based management?

  • Identifying cost drivers in activity-based costing
  • Explaining how costs are computed using activity-based costing
  • Enhancing profitability (correct)
  • Calculating manufacturing cycle efficiency

What is an activity in the context of cost accounting?

  • A non-repetitive action performed in fulfillment of a business function
  • A repetitive action performed in fulfillment of a business function (correct)
  • An action performed outside of the business function
  • A one-time action performed in fulfillment of a business function

What does activity-based costing (ABC) compute?

<p>Costs (B)</p> Signup and view all the answers

When is it appropriate to use activity-based costing?

<p>When costs need to be computed accurately (A)</p> Signup and view all the answers

Which of the following is a key objective of activity-based management?

<p>Improving customer satisfaction (C)</p> Signup and view all the answers

What is the purpose of designating cost drivers in activity-based costing?

<p>To allocate costs to activities (D)</p> Signup and view all the answers

Which of the following is true about non-value added activities?

<p>They decrease manufacturing cycle efficiency (C)</p> Signup and view all the answers

What types of information does an activity-based costing/management system provide?

<p>Information about both value-added and non-value added activities (D)</p> Signup and view all the answers

When is it appropriate to use activity-based costing?

<p>When manufacturing cycle efficiency is low (A)</p> Signup and view all the answers

Flashcards are hidden until you start studying

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser