Chapter 22, Problem 3QS

Which is not a task typically associated with ABC systems? A. calculating the overhead application rate for each cost pool B. applying a single cost rate C. identifying a cost driver D. more correctly allocating overhead costs

Accumulating costs means that a. costs must be summed and entered on the income statement. b. each cost must be linked to some cost object. c. costs must be measured and tracked. d. costs must be allocated to units of production. e. costs have expired and must be transferred from the balance sheet to the income statement.

How does management determine the order in which support department costs are allocated under the sequential method?

What is the proper order of tasks In an ABC system? identify the cost drivers, assign the costs to the products, calculate the overhead application rate for each cost pool, identify the cost pools assign the costs to the products, identify the cost drivers, calculate the overhead application rate for each cost pool, identify the cost pools identify the cost drivers, identify the cost pools, calculate the overhead application rate for each cost pool, assign the costs to the products identify the cost pools, identify the cost drivers, calculate the overhead application rate for each cost pool, assign the costs to the products

Classify the following activities as part of the identifying (I), recording (R), or communicating (C) aspectsof accounting. Keeping a log of service costs.

cost accounting is divided over three-phase. briefly discuss each what are the four control accounts concerned primarily with cost determinants

The following statements are correct objective of cost accounting except:   Ascertainment of cost Planning and controlling cost Decision making Observations

Prepare a cost of production report using the ABC approach.

1. With relevant examples, explain the following; i. Primary appointment and secondary apportionment ii. Direct cost and indirect cost 2. Discuss 4 (four) importance of Cost Accounting to your programme of study.