Which of the following might be a reason that allocating overhead under an activity-based approach might have less manufacturing overhead allocated to the products? a.The general overhead cost pool is not allocated to products under activity-based costing b.The product mix includes products that are not similar in material and labor c.The product mix has all products that are similar in makeup of materials and labor d.None of the above
101.Which of the following might be a reason that allocating overhead under an activity-based approach might have less manufacturing overhead allocated to the products?
a.The general overhead cost pool is not allocated to products under activity-based costing
b.The product mix includes products that are not similar in material and labor
c.The product mix has all products that are similar in makeup of materials and labor
d.None of the above
102.The process of using activity-based costing information to manage a business’s activities, and thus its costs, is called
a.Activities’ management.
b.Product management.
c.Activity-based management.
d.None of the above.
103.The greatest use of activity-based costing information for managers is for
a.Product costing.
b.Pricing decisions.
c.Channel profitability decisions.
d.Process improvement.
104.Activity-based costing information may be used by managers for
a.Process improvement.
b.Distribution channel profitability decisions.
c.Pricing decisions.
d.All of the above.
105.Which of the following is not a reason that managers use activity-based costing information?
a.Pricing decisions
b.Distribution channel profitability decisions
c.Product costing
d.All of the above are reasons that managers use activity-based costing information
106.Which of the following is not a consequence of poor management of an organization’s activities?
a.The company may see an increase in costs
b.Employees may experience a decrease in job satisfaction
c.Non-value added activities are generally eliminated
d.All of the above are consequences of poor management of an organization’s activities.
107.When managers reduce the workforce without considering the activities that employees performs, which of the following is not a likely consequence?
a.The amount of work will be reduced.
b.There will be a decrease in job satisfaction.
c.The company will have to pay overtime.
d.All of the above are likely consequences.
108.Those activities that consume resources but do not contribute to the value of the product are referred as
a.Contribution activities.
b.Non-value-added activities.
c.Manufacturing overhead.
d.Period costs.
109.Those activities that create the product the customer wants to buy are referred to as
a.Profitability activities.
b.Manufacturing burden.
c.Value-added activities.
d.Period costs.
110.The categories of activities that are required to produce and sell products, non-value-added and value-added, are defined from which of the following perspectives?
a.Industry
b.Management
c.Customer
d.Organization
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