Activity cost pool - Study guides, Class notes & Summaries

RMI 3567 Exam 2 Questions and Answers Already Passed What are three positive externalities that occurred due to access to terrorism insurance? 1. facilitates real estate transaction 2. strengthens businesses' ability to operate in risky areas 3. protects wealth/savings of households in risky areas Pollution from gasoline in a car or industrial pollution would be examples of what? negative externality This is the most common terrorism model for insurance risk pool What are the t...

Activity-Based Costing Exam Questions and Answers What is the process used to assign costs in an ABC system? - Answer-1. Identify the relevant cost object. 2. Identify activities. 3. Assign (trace and allocate) costs to activity-based cost pools. 4. For each ABC cost pool, choose a cost driver. 5. For each ABC cost pool, calculate an allocation rate. (Allocation rate = Activity cost / Volume of cost driver) 6. For each ABC cost pool, allocate activity costs to the cost object. (Allocatio...

BUS 475 - 100 Questions and Answers Latest (100%Verified by Expert). 1) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr. Totals $58,000 $48,000 $34,000 $44,000 Closing entries are necessary for __________. A. temporary accounts only B. permanent accounts only C. permanent or real accounts only D. both permanent and temporary accounts Read more: 2) As Plant Controller, you are tryi...

Principles of Financial and Managerial Accounting - D196 WGU Questions and Answers 100% Pass the production budget - Answer- Sales budget + ending finished goods inventory - beginning finished goods inventory direct materials production budget - Answer- Production budget × direct materials per unit the direct materials purchases budget - Answer- Direct materials production budget + ending direct materials inventory - beginning direct materials inventory Cash collected from customers - A...

Activity Based Costing Exam Questions and Answers Types of Activities: - Answer--Unit Level -Batch Level -Product Level -Facility Level Cost Pool Activity Rate (Equation) - Answer-Overhead assigned to pool ($) ------------------------------= Cost Pool Activity Rate ($/Unit) Number of Activities (units) How to allocate cost pools to cost objectives: - Answer-1. Determine cost pool activity rate 2. Apply to weighted cost objectives e.g. cost pool activity rate of $100, and cost obj...

Which of the following is not typical of traditional costing systems? - ANSWER-Use of multiple cost drivers to allocate overhead. Value-added activities - ANSWER-all of the above. Which of the following is a batch-level activity? - ANSWER-Purchase ordering The use of activity-based costing in service industries - ANSWER-all of these. An "Ordering and Receiving Materials" cost pool would most likely have as a cost driver: - ANSWER-number of purchase orders. Which of the following...

What are the 3+1 stages of absorption costing? correct answer: 1. Allocation 2. Apportionment 3. Absorption = Production Cost 4. Under/over = Non prod OH Why would you use Absorption Costing? correct answer: Valuing Inventory Pricing Decisions Establishing profitability What are pros and cons of absorption and marginal costing? correct answer: *Absorption* -Avoids varying profits if sales are seasonal -Consistent with accounting standards -Recognises Long Run variable costs -...

Brooks Final Exam Questions and Correct Answers 2024/2025 with complete solution. Which of the following is not typical of traditional costing systems? Use of multiple cost drivers to allocate overhead. Value-added activities all of the above. Which of the following is a batch-level activity? Purchase ordering The use of activity-based costing in service industries all of these. An "Ordering and Receiving Materials" cost pool would most likely have as a cost driver: number of purch...

Activity-Based Costing (ABC) - ANS A two-stage costing method in which overhead costs are assigned to products on the basis of the activities they require. Activity - ANS An event that causes the consumption of overhead resources. Activity Cost Pool - ANS A "bucket" in which costs are accumulated that relate to a single activity measure in an activity-based costing system. Activity Measure - ANS An allocation base in an activity-based costing system: ideally, a measure of ...

CAIA Level I Exam 2023 5th percentile vs 25th percentile performance - CORRECT ANSWER-5th percentile managers outperform in every comparison BUT 25th percentile managers' performance is more volatile --> even if 25th percentile managers outperform they tend to mean revert --> demonstrates the perils of choosing managers based on historical performance alternative asset performance evaluation - CORRECT ANSWER-unlike in traditional assets, alpha is difficult to define in alterna...