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

The traditional cost drivers used in computing overhead absorption rates are: a. direct labour cost, machine hours, factory overhead b. direct labour hours, machine cost ,direct labour cost c. floor space, rent and rates, machinery value d. direct labour hours, machine hours, direct labour cost

Differentiate between the types of manufacturing environments that would be suited to: i. job costing and ii. process costing Include two examples of manufacturers that would fit each of these two environments

In Traditional product costing systems, the measure of product activity is usually some volume based cost driver, like direct labor hours. True or False?

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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

Which of the following is considered part of the product costs under absorption costing but not under variable costing? Group of answer choices Direct materials Selling expenses Variable overhead Fixed manufacturing overhead

2

Which of the following quantities is an example of an activity cost driver in activity-based costing? O A. number of direct labour hours O B. number of labour transactions O C. number of machine hours O D. all of the above

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