ACC 350 all Weeks Quiz,midterm and final
exam – Strayer
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ACC 350 all Weeks Quiz,midterm and final exam
– Strayer
ACC 350 Week 2 Quiz 1
ACC 350 Week 3 Quiz 2
ACC 350 Week 4 Quiz 3
ACC 350 Week 5 Midterm Exam
ACC 350 Week 6 Quiz 4
ACC 350 Week 7 Quiz 5
ACC 350 Week 9 Quiz 6
ACC 350 Week 9 Quiz 7
ACC 350 Week 10 Quiz 8
ACC 350 Week 11 Final Exam
1) Which of the following statements is true of a peanut-butter
costing system?
2) Overcosting a particular product may result
in ________.
1. A) loss of market share
2. B) pricing the product too low
3. C) operating efficiencies
4. D) understating total product costs
3) For a company with diverse products,
undercosting overhead of a product will lead to ________.
1.
A) misallocating
direct labor costs of the product.
2.
B) misallocating
direct material costs of the product
3.
C) misallocating
indirect costs of another product
4.
D) misallocating
direct costs of another product
4) Aqua Company produces two products–Alpha
and Beta. Alpha has a high market share and is produced in bulk. Production of
Beta is based on customer orders and is custom designed. Also, 55% of Beta’s
cost is shared between design and setup costs, while Alpha’s major portions of
costs are direct costs. Alpha is using a single cost pool to allocate indirect
costs. Which of the following statements is true of Aqua?
1. A) Aqua will overcost Beta’s direct costs as
it is using a single cost pool to allocate indirect costs.
2. B) Aqua will undercost Alpha’s indirect costs
because alpha has high direct costs.
3. C) Aqua will overcost Alpha’s indirect costs
as it is using a single cost pool to allocate indirect costs.
4. D) Aqua will overcost Beta’s indirect costs
because beta has high indirect costs.
5) Product-cost cross-subsidization ________.
1.
A) exists when one
overcosted product results in more than one other product being overcosted
2.
B) means that if a
company undercosts more than one of its products, it will overcost more than
one of its other products
3.
C) means that if a
company undercosts one of its products, it will overcost at least one of its
other products
4.
D) exists only when
one overcosted product results in all other products being overcosted
6) An accelerated need for refined cost
systems is due to ________.
1. A) global monopolies
2. B) rising prices
3. C) intense competition
4. D) a shift toward increased direct costs
7) Uniformly assigning the costs of resources
to cost objects when those resources are actually used in a nonuniform way is
called ________.
1.
A) activity-based costing
2.
B) uniform costing
3.
C) peanut-butter
costing
4.
D) department costing
8) Product-cost cross-subsidization is very common when costs are
uniformly spread across various products.
9) Companies that overcost products will most likely lose market
share.
10) If companies increase market share in a given product line
because their reported costs are less than their actual costs, they will become
more profitable in the long run.
11) As product diversity and indirect costs increase, it is usually
best to switch away from a broad averaging system to an activity-based cost
system.
12) Peanut-butter costing system is a more refined costing system
compared to activity-based costing system.
13) Explain how a top-selling product may actually result in losses
for the company
1) Refining a cost system includes ________.
1. A) classifying as many costs as indirect costs
as is feasible
2. B) creating as many cost pools as possible
3. C) identifying the activities involved in a
process
4. D) seeking a lesser level of detail
2) Which of the following is true of
refinement of a costing system?
1.
A) While refining a
costing system, companies should identify as many indirect costs as is
economically feasible.
2.
B) A homogeneous cost
pool will use multiple cost drivers to allocate costs.
3.
C) It reduces the use
of broad averages for assigning the cost of resources to cost objects.
4.
D) It is likely to
yield the most decision-making benefits when direct costs are a high percentage
of total costs.
3) Which of the following is a reason that has
accelerated the demand for refinements to the costing system?
1.
A) The declining
demand for customized products has led managers to decrease the variety of
products and services their companies offer.
2.
B) The use of product
and process technology has led to an increase in indirect costs and a decrease
in direct costs.
3.
C) The increased of
automated processes has led to the increase in direct manufacturing cost
leading to a decrease in breakeven point.
4.
D) The increasing
competition in product markets has led to an increase in contribution margin
resulting in a decrease of breakeven point.
4) Demand for refinements to the costing
system has accelerated due to ________.
1.
A) increase in direct
costs
2.
B) decrease in product
diversity
3.
C) decrease in
indirect costs
4.
D) competition in
product markets
5) Collin Inc. produces hospital equipment and
the setup requirements vary from product to product. Collin produces its
products based on customer orders and uses ABC costing. In one of its indirect
cost pools, setup costs and distribution costs are pooled together. Costs in
this pool are allocated using number of customer orders for the easiness of
costing operations. Based on the information provided, which of the following
arguments is valid?
1.
A) Collin has clearly
failed to identify as many direct costs as is economically feasible.
2.
B) All costs in a
homogeneous cost pool have the same or a similar cause-and-effect relationship
with the single cost driver that is used as the cost-allocation base for
Collin.
3.
C) Collin has
unnecessarily wasted resources by classifying setup and distribution costs as
they could have been considered as direct costs.
4.
D) Collin has failed
to use the correct cost driver as the cost-allocation base for setup costs.
6) When refining a costing system, a company should classify as
many costs as possible as indirect costs, thereby minimizing the extent to
which costs have to be traced rather than allocated.
7) A refined costing system provides better measurement of the costs
of indirect resources used by different cost objects, no matter how differently
various cost objects use indirect resources.
8) Indirect labor and distribution costs would most likely be in
the same activity-cost pool.
9) Direct tracing of costs reduces the amount of costs classified
as indirect costs.
10) A cost-allocation base is a necessary element when using a
strategy that will refine a costing system.
11) What are the factors that are causing many companies to refine
their costing systems to obtain more accurate measures of the costs of their
products?
1) ABC systems create ________.
1.
A) one large cost pool
2.
B) homogenous
activity-related cost pools
3.
C) activity-cost pools
with a broad focus
4.
D) activity-cost pools
containing many direct costs
2) Activity based costing system differs from
traditional costing systems in the treatment of ________.
1.
A) direct labor costs
2.
B) direct material
costs
3.
C) prime costs
4.
D) indirect costs
3) ABC systems ________.
1.
A) highlight the
different levels of activities
2.
B) limit cost drivers
to units of output
3.
C) allocate costs
based on the overall level of activity
4.
D) generally undercost
complex products
4) Which of the following statements is true
of activity-based costing?
1.
A) In activity-based
costing, direct labor-hours is always the best allocation base to allocate all
non-manufacturing indirect costs.
2.
B) Activity based
costing is more suited to companies with high product diversity than companies
with single product line.
3.
C) Activity based
costing broadly averages or spreads the cost of resources uniformly to cost
objects such as products or services.
4.
D) The main advantage
of activity-based costing over peanut-butter costing is the accurate
distribution of all direct costs to the products.
5) A single indirect-cost rate distort product
costs because ________.
1.
A) there is an
assumption that all support activities affect all products
2.
B) it recognizes
specific activities that are required to produce a product
3.
C) competitive pricing
is ignored
4.
D) it assumes all
costs are product costs
Which of the following statement is true of
Hebar’s setup costs under traditional costing?
1.
A) L3 pack is
undercosted by $5,550
2.
B) L7 pack is
undercosted by $5,450
3.
C) L3 pack is
overcosted by $5,550
4.
D) L7 pack is overcosted
by $5,550
7) Which of the following statements is true
of activity-based costing?
1.
A) Activity-based
costing ignores the allocation of marketing and distribution costs.
2.
B) Activity-based
costing is more likely to result in major differences from traditional costing
systems if the firm manufactures only one product rather than multiple
products.
3.
C) Activity-based
costing classifies some of the indirect costs as direct costs.
4.
D) Chances of
product-cost cross-subsidization are higher in activity-based costing compared
to traditional costing systems.
8) Activity-based costing (ABC) can eliminate
cost distortions because ABC systems ________.
1.
A) establish a
cause-and-effect relationship with the activities performed
2.
B) use single cost
pool for all overhead costs, thereby enabling simplicity
3.
C) use a broad average
to allocate all overhead costs
4.
D) never consider
interactions between different departments in assigning support costs
9) Product lines that produce different
variations (models, styles, or colors) often require specialized manufacturing
activities that translate into ________.
1.
A) fewer indirect
costs for each product line
2.
B) decisions to drop
product variations
3.
C) a greater number of
direct manufacturing labor cost allocation rates
4.
D) greater overhead
costs for each product line
10) How much of the account inquiry cost will
be assigned to Department A?
1.
A) $50,000
2.
B) $200,000
3.
C) $60,000
4.
D) $80,000
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