Which best describes the flow of overhead costs in an activity-based costing system? Group of answer choices Overhead costs –> direct labor cost or hours –> products Overhead costs –> products Overhead costs –> activity cost pools –> cost drivers –> products Overhead costs –> machine hours –> products

Which best describes the flow of overhead costs in an activity-based costing system? Group of answer choices Overhead costs –> direct labor cost or hours –> products Overhead costs –> products Overhead costs –> activity cost pools –> cost drivers –> products Overhead costs –> machine hours –> products

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following statements is true? O The first step in activity-based costing is to assign overhead costs to products using cost drivers ABC usually results in less appropriate management decisions Activity-based costing allocates overhead to multiple activity cost pools and assigns the cost pools to products using cost drivers O Traditional costing systems use multiple predetermined overhead rates
2
What is the right cost hierarchy in Activity-Based-Costing ABC Select one: O a. Organization, facilities, products, customers, batch level and then unit level O b. Organization, facilities, customers, products, batch level and then unit level O c. Organization, products, facilities, customers, batch level and then unit level O d. Organization, customers, products, facilities, batch level and then unit level
1. What do you mean by process costing? Who uses process costing give the example of company with the product?
Which one of the following is considered a basic similarity between job order cost and process cost systems? • Tracking costs through a series of processes of departments. • Unit cost computations. O The flow of costs through the accounts. O The point at which costs are totaled.
Why is activity-based costing described as a “two-stage” costing method?
During production, how are the costs in process costing accumulated?A. to cost of goods soldB. to each individual productC. to manufacturing overheadD. to each individual department
During production how are the costs in process costing accumlated.
Which costing method is likely to provide the most accurate product cost? a. Volume-based costing using direct labor hours to allocate overhead b. Volume-based costing using a plantwide overhead rate c. Normal costing using a plantwide overhead rate d. Activity-based costing
Q.3.4 Briefly discuss the following concepts. Your discussion should include reference as to how it is determined: Actual manufacturing overhead costs. Budgeted manufacturing overhead costs. Allocated or applied manufacturing overhead costs. ●