Question :
Multiple Choice Questions
15.Activity based costing can improve costing activity for:
A.Manufacturing : 1236277
Multiple Choice Questions
15.Activity based costing can improve costing activity for:
A.Manufacturing companies only.
B.Service companies only.
C.Merchandising companies only.
D.Any company in any industry.
E.Government entities only.
16.A system of assigning costs to departments and products on the basis of a variety of activities instead of only one allocation base is called:
A.Plantwide overhead costing.
B.A cost center accounting system.
C.Controllable costing.
D.Activity-based costing.
E.Performance costing.
17.A factor that causes the cost of an activity to go up or down is a(n):
A.Direct factor.
B.Indirect factor.
C.Cost driver.
D.Product cost.
E.Contribution factor.
18.An activity-based cost allocation system:
A.Is one form of a direct or variable costing system.
B.Does not provide total unit cost data.
C.Traces costs to products on the basis of activities performed on them.
D.Does not provide for the allocation of any cost to products that cannot be directly traced to those products.
E.Does not involve the level of detail and the number of allocations that companies make with traditional allocation methods.
19.After all activity costs are accumulated in an activity cost pool account, overhead rates are computed and costs are allocated to cost objects based on:
A.Direct factors.
B.Indirect factors.
C.Cost drivers.
D.Joint cost principles.
E.Opportunity cost principles.
20.If a firm uses activity-based costing to allocate costs, it does all but which of the following?
A.Combine homogenous costs in appropriate pools.
B.Select appropriate cost drivers.
C.Calculate an appropriate rate for each pool.
D.Allocate costs based on predetermined rates for cost pools.
E.Apply a volume-related measure per unit of product.
21.The following is taken from Jeffers Company’s internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor costs, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of overhead allocated to Dept. 1 using activity-based costing.
A.$22,069.
B.$19,877.
C.$47,512.
D.$22,243.
E.$18,703.
22.The following is taken from Jeffers Company’s internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor costs, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of overhead allocated to Dept. 2 using activity-based costing.
A.$16,392.
B.$19,877.
C.$28,830.
D.$22,243.
E.$73,600.
23.The following is taken from Clausen Company’s internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of indirect labor allocated to Dept. 1 using activity-based costing.
A.$5,505.
B.$54,371.
C.$16,864.
D.$10,471.
E.$8,073.
24.The following is taken from Clausen Company’s internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of rent and utilities allocated to Dept. 2 using activity-based costing.
A.$6,000.
B.$13,134.
C.$8,566.
D.$14,092.
E.$14,152.
or Waypoint 
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