1. Which is not an example of a cost driver? a. General and administrative expenses. b....

1. Which is not an example of a cost driver?

a.	General and administrative expenses.
b.	Machine hours.
c.	Number of inspections.
d.	Number of different customers.

2. Which of the following reflects the simplest allocation method for a factory?

a.	The department allocation method.
b.	The unit cost allocation method.
c.	The plantwide allocation method.
d.	The use of activity-based costing.

3. Significant differences between the "traditional view" of quality and the emerging "quality-based view" relate to which of the following?

a.	quality production, inspections, causes of defects, standards, purchasing, and customer focus.
b.	financial, internal business process, learning and growth, customer.
c.	total quality, smooth production flow, purchasing quality materials, well trained and flexible workforce, short customer-response times, backlog of orders.
d.	prevention costs, appraisal costs, internal failure costs, and external failure costs.

Solutions

Expert Solution

Q1 - correct option is ........(a) General and administrative expeses

Infact this is a cost pool, where cost is aggregated. Remaining all three options are used as cost drivers used to divide the repsective cost pools, to calculate the cost per cost driver.

Q2 - correct option is ........ (c) The plantwide allocation method.

Inrespect of a factory, when plantwide allocation method is choosen, all the overhead pertaining to the factory are collected with respect to the plant and divided by plant operating hours (machine hours).

Q3- Correct option is ............(a) quality production, inspections, causes of defects, standards, purchasing, and customer focus.

This is the only option that contains a complete set of differences. Remaining options are a mix of differences and other irrelevant differences.

ekkarill92 answered 1 year ago

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