Question : 41) The logic of an ABC system includes all of : 1196247

 

41) The logic of an ABC system includes all of the following statements, EXCEPT 41) ______ A) activity-specific cost-allocation bases are the drivers of costs in the cost pools. B) the overhead used by different products is not important, as it is a fixed cost. C) a strong cause-and-effect relationship with between overhead costs and the cost allocation base is essential. D) a greater level of detailed information concerning costs will help organizations be more efficient. E) the requirement to measure cost-allocation bases of different activities used by different products is essential.

42) In an activity-cost pool, 42) ______ A) the costs have a cause-and-effect relationship with the cost-allocation base for that activity. B) costs in a cost pool can always be traced directly to products. C) each pool pertains to a narrow and focused set of costs. D) a measure of the activity performed serves as the cost allocation base. E) the cost pools are homogeneous over time.

43) How does direct tracing of costs improve cost accuracy? 43) ______ A) it identifies the cause and effect relationship between activities and non-activities B) it identifies the cause and effect relationship between direct costs and indirect costs C) because with a greater number of cost pools, it does not have to be concerned with the overhead costs used by different products D) it makes no assumptions about the cause and effect relationship between the cost pool and the cost allocation base E) it makes no assumptions about the cause and effect relationship between direct costs and activities

44) Which of the following does not characterize an ABC system, (as compared to a traditional costing system)? 44) ______ A) smaller cost pools B) focus on activities C) more homogeneous cost pools D) more cost drivers E) less expensive to set up and maintain

45) Which of the following is not relevant concerning cost hierarchies? 45) ______ A) cost pools B) degree of difficulty in determining cause-and-effect relationships C) minimum cost required for a particular process D) degree of difficulty in determining benefits-received relationships E) the types of cost drivers

46) A four-part cost hierarchy includes all of the following EXCEPT 46) ______ A) market-sustaining costs. B) facility-sustaining costs. C) product-sustaining costs. D) batch-level costs. E) output unit-level costs.

47) If the cost of an activity increases with each hour of machine time, it is which of the following? 47) ______ A) batch-level cost B) output unit-level cost C) facility-sustaining cost D) product-sustaining cost E) input unit-level cost

48) If the cost of an activity increases with the number of purchase orders placed, rather than to the quantity of items purchased, it is which of the following? 48) ______ A) facility-sustaining cost B) input unit-level cost C) batch-level cost D) product-sustaining cost E) output unit-level cost

49) If the cost of an activity increases with the quantity of items purchased, it is which of the following? 49) ______ A) product-sustaining cost B) unit-level cost C) facility-sustaining cost D) output-level cost E) batch-level cost

50) Engineering costs incurred to change product designs, are which of the following? 50) ______ A) batch-level cost B) input unit-level cost C) facility-sustaining cost D) product-sustaining cost E) output unit-level cost

 

 

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