ity department c. Printing department d. Framing department   3b. Identify the department that gets higher cost due to asset value based cost allocation. a. Janitorial department

which of the following is the best example of a unit-level activity? 1.Painting a final product 2.Human resources 3.Product testing  4. none

1   How should the cost of the fire insurance for a manufacturing plant be classified? Select one: a. Period cost b. Variable cost c. Prime cost d. Product cost

Which one of the following is not an example of a support department? Select one: a. Human resources b. Fabricating c. Information technology d. General factory

Checklist of evidence required Finally, you should reflect on the results of your activity-based costing exercise, by: a) explaining how costs are categorised. b) identifying those cost areas that have the greatest impact on the profitability of the product that you have investigated. c) evaluating the reasons for producing an activity-based cost model. d) explain how ABC model used to improve profitability. A research and problem solving project to explore the costs associated with engineering activities and to complete an activity-based cost model for a product.

Classify the following costs as typically direct (D) or indirect (I): Project staff Audit and legal Utilities Rent Raw materials Training on equipment Project supplies Labor Administrative staff Miscellaneous office supplies Quality assurance IT department Scheduled maintenance Shared software packages

Which of the following cost and cost allocation base have a stronger cause and effect relationship? A) administration costs and cubic feet B) setup costs and square feet C) quality control costs and the number of inspections D) machine maintenance and setup hours

Question 1 The term "cost" means: all of these. the price paid for a raw material. the wage paid to a worker. the price charged by an entity for its services. Question 2 The sequence of activities that add value to the organization are: the value chain. the value processes. the chain of production events. the strategic cost initiatives.

Classify the different costs as unit, batch, product, or facility. Answers (unit, batch, product, or facility) may be used more than once and some answers may not be used at all. Research and development Electricity                                       Building security costs   Quality control      Design costs