Activity-Based Management and Costing Quiz

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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?

Costs Signup and view all the answers

When is it appropriate to use activity-based costing?

When costs need to be computed accurately Signup and view all the answers

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

Improving customer satisfaction Signup and view all the answers

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

To allocate costs to activities Signup and view all the answers

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

They decrease manufacturing cycle efficiency Signup and view all the answers

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

Information about both value-added and non-value added activities Signup and view all the answers

When is it appropriate to use activity-based costing?

When manufacturing cycle efficiency is low Signup and view all the answers

Activity-Based Management and Costing Quiz

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Questions and Answers

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

What is the focus of activity-based management?

What is an activity in the context of cost accounting?

What does activity-based costing (ABC) compute?

When is it appropriate to use activity-based costing?

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

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

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

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

When is it appropriate to use activity-based costing?

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