Multiple Choice Quiz
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Results Reporter
Out of 10 questions, you answered 10 correctly with a final grade of 100%
10 correct (100%)
0 incorrect (0%)
0 unanswered (0%)
Your Results:
The correct a
...
Multiple Choice Quiz
(See related pages)
Results Reporter
Out of 10 questions, you answered 10 correctly with a final grade of 100%
10 correct (100%)
0 incorrect (0%)
0 unanswered (0%)
Your Results:
The correct answer for each question is indicated by a .
1 CORRECT
Which of the following statements is correct?
A) Activity-based costing uses a number of activity cost pools, each of which is allocated to
products on the basis of direct labor-hours.
B) Activity rates in activity-based costing are computed by dividing costs from the first-stage
allocations by the activity measure for each activity cost pool.
C) An activity-based costing system is generally easier to implement and maintain than
traditional costing system.
D) One of the goals of activity-based management is the elimination of waste by allocating
costs to products that waste resources.
Feedback:
The correct answer is B (Learning Objective 1):
Rather than using a single allocation base (such as direct labor-hours), activity-based costing
uses a number of allocation bases for assigning costs to products (thus statement A is false).
Generally, an activity-based costing system is harder (rather than easier) to implement and
maintain than a traditional costing system (thus statement C is false). Rather than eliminating
waste by allocating costs to products that waste resources, activity-based management is a
management approach that focuses on managing activities as a way of eliminating waste and
reducing delays and defects (thus statement D is false). Statement B is true.
2 CORRECT
All of the following are examples of batch-level activities except:
A) Clerical activity associated with processing purchase orders to produce an order for a
standard product.
B) Purchase order processing.
C) Setting up equipment.
D) Worker recreational facilities
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