Subject = Managerial Accounting ABC = Activity Based Costing 1.) Which of the following statements is...

Subject = Managerial Accounting

ABC = Activity Based Costing

1.) Which of the following statements is true?

A.) ABC allocates overhead based on a product's usage of resources.

B.) ABC is always a better way to find product costs than other methods.

C.) There should be 3 activity pools for ABC.

2.) Please select all of the answers that are considered disadvantages of ABC:

A.) Cost to implement ABC

B.) Cost Distortion can still exist, even with ABC

C.) ABC can provide more accurate overhead cost allocation

Expert Solution

ekkarill92 answered 1 month ago

Which of the following statements are true regarding activity-based costing? A) Costs are allocated based on...

Which of the following statements are true regarding activity-based costing? A) Costs are allocated based on a pre-determined overhead rate for each cost pool B) Transitioning from traditional costing methods to Activity-Based Costing is a relatively simple process that most companies complete quickly. C) Activity-Based Costing results in a different amount of total overhead applied than under traditional costing methods. D) Activity-Based costingoriginated in the early 1900's Using traditional costing rather than Activity-Based Costing might lead to which of the...

Activity-based Costing is one of the cost accounting strategies. Discuss the ABC system and the main...

Activity-based Costing is one of the cost accounting strategies. Discuss the ABC system and the main differences between the traditional costing and the ABC systems.

Explain the purpose of Activity-Based Costing(ABC).

- Activity-Based Costing Define activity-based costing (ABC) systems. What benefits does implementing an ABC system bring...

- Activity-Based Costing Define activity-based costing (ABC) systems. What benefits does implementing an ABC system bring to the company? Explain at least two benefits. What are the disadvantages to implementing an ABC system? List and explain at least two. Would the proposed changes make ABC a universally applicable costing method in your opinion? Why or why not? Elaborate your response. No plagiarised answer, please.

For each of the following activities, indicate which of the objectives of managerial accounting activity is...

For each of the following activities, indicate which of the objectives of managerial accounting activity is involved. In some cases, several objectives may be involved. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 1....

For each of the following activities, explain which of the objectives of managerial accounting activity is...

For each of the following activities, explain which of the objectives of managerial accounting activity is involved. In some cases, several objectives may be involved. 1. Developing a bonus reward system for the managers of the various offices of the American Automobile Association. 2. Comparing the actual and planned cost of a consulting engagement completed by an engineering firm such as Allied Engineering 3. Determining the cost of manufacturing a tennis racket at Wilson Sporting Goods 4. Measuring the cost...

What is the difference between Activity-Based Costing(ABC) and Traditional Costing?

1) Which of the following statement is true? a. activity-based costing is a more detailed and...

1) Which of the following statement is true? a. activity-based costing is a more detailed and complex costing method than is JIT costing b. Activity-based costing and JIT costing are incompatible c. Activity-based costing is a simplified cost system that does not track costs through the sequence of manufacturing operations d. All of the above are true 2) Which of the following is a required step in an ABC system? a. Estimate the total direct costs of each activity b....

ACCT4210–Cost and Managerial Accounting Problem 4: Activity-based costing Rome, Inc., produces two products, Product A and...

ACCT4210–Cost and Managerial Accounting Problem 4: Activity-based costing Rome, Inc., produces two products, Product A and Product B. If currently allocates overhead costs using direct-labor hours, but the controller has recommended an activity-based costing (ABC) system using the following data: Activity Level Activity Cost-Driver Base Cost Product A Product B Production setup Number of setups $ 90,000 11 19 Materials handling & requisition Number of parts per unit $ 15,000 6 18 Packaging & shipping Number of units shipped $...

Which of the following statements about ABC analysis is false? A) ABC analysis is based on...

Which of the following statements about ABC analysis is false? A) ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings. B) In ABC analysis, "A" Items are tightly controlled, have accurate records, and receive regular review by major decision makers. C) In ABC analysis, "C" Items have minimal records, periodic review, and simple controls. D) ABC analysis is based on the presumption that all items must be tightly...

Question