If you know these and get them right I will have a few more coming. If you don't know the answers don't respond. A sentence explanation is all I need or just do the calculations.
1.With activity-based costing, the goal is to
- Develop a product cost that captures the amount of each resource consumed by the activities performed to produce a specific product.
- Develop a product cost that allocates manufacturing overhead to each resource consumed by the activities performed to a group of similar products.
- Develop a product cost that eliminates all waste such as machine down time and defective products.
- None of the above.
2.The main reason for generating new information provided by activity-based costing is
- To help managers make better decisions.
- To provide employees in the accounting department with work to do.
- To calculate variances.
- None of the above.
3.In an activity-based costing system, which of the following is not a category in which activities are classified?
- Product-level
- Operations-level
- Customer-level
- Organization-level
4.Activities that are performed all at once on groups of products is classified as a
- Unit-level activity.
- Group-level activity.
- Batch-level activity.
- None of the above
5.Identifying activities performed in the organization is the first step in developing activity-based product costs. Which of the following is a way to identify these activities?
- Asking employees what they do
- Analyzing industry averages
- Both a and b
- Neither a nor b
6.Which of the following is a reason that employees must estimate how much time employees spend performing each activity?
- So that the budget committee will know how to allocate direct material
- So that the resources consumed by the activities can be calculated
- So that the level of detail will not become too burdensome
- None of the above