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ACCT 212 Chapter 4: Activity-Based Costing Exam Study Guide $9.99
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ACCT 212 Chapter 4: Activity-Based Costing Exam Study Guide
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ACCT 212 Chapter 4: Activity-Based Costing Exam Study Guide Activity-Based Costing (ABC) - Answer-A two-stage costing method in which overhead costs are assigned to products on the basis of the activities they require. Activity - Answer-An event that causes the consumption of overhead resources...

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  • October 7, 2024
  • 10
  • 2024/2025
  • Exam (elaborations)
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  • acct 212 chapter 4 activity based costing exam st

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FIRST PUBLISH SEPTEMBER 2024




ACCT 212 Chapter 4: Activity-Based
Costing Exam Study Guide

Activity-Based Costing (ABC) - Answer✔✔-A two-stage costing method in which overhead costs are

assigned to products on the basis of the activities they require.


Activity - Answer✔✔-An event that causes the consumption of overhead resources.


Activity Cost Pool - Answer✔✔-A "bucket" in which costs are accumulated that relate to a single activity

measure in an activity-based costing system.


Activity Measure - Answer✔✔-An allocation base in an activity-based costing system: ideally, a measure

of whatever causes the costs in an activity cost pool.


Activity Rate - Answer✔✔-An overhead rate in activity-based costing. Each activity cost pool has its own

activity rate which is used to assign overhead to products and services.


Unit-Level Activities - Answer✔✔-Activities that arise as a result of the total volume of goods and

services that are produced, and that are performed each time a unit is produced.


Batch-Level Activities - Answer✔✔-Activities that are performed each time a batch of goods is handled

or processed, regardless of how many units are in the batch. The amount of resource consumed depends

on the number of batches run rather than on the number of units in the batch.


Activity-Based Management - Answer✔✔-A management approach that focuses on managing activities

as a way of eliminating waste and reducing delays and defects.


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, EMILLYCHARLOTTE 2024/2025 ACADEMIC YAER ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISH SEPTEMBER 2024


Benchmarking - Answer✔✔-A systematic approach to identifying the activities with the greatest room

for improvement. It is based on comparing the performance in an organization with the performance of

other, similar organizations known for their outstanding performance.


Which of the following statements is false? (You may select more than one answer.)




a) In recent years, most companies have experienced increasing manufacturing overhead costs in

relation to direct labor costs.


b) Batch-level costs do not depend on the number of units produced in a batch.


c) Facility-level costs are not caused by particular products.


d) Product-level costs are larger for high-volume products than for low-volume products. - Answer✔✔-D


Which of the following statements is true? (You may select more than one answer.)




a) The costs of a unit-level activity should be proportional to the number of units produced.


b) Unit-level activities are performed each time a unit is produced.


c) Setting up equipment is an example of a unit-level activity.


d) Activity-based costing systems may use direct labor-hours and/or machine-hours to assign unit-level

costs to products. - Answer✔✔-A, B, and D


Which of the following explain why activity-based costing improves product cost accuracy when

compared to traditional methods? (You may select more than one answer.)


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