管理会计双语题库：chapter 5

1、Management Accounting, 6e (Atkinson et al.)Chapter 5 Activity-Based Cost SystemsObjective 11) Traditional cost systems use actual departments or cost centers for defining cost pools to accumulate and redistribute costs.Answer: TRUEDiff: 1Terms: cost poolsObjective: 1AACSB: Reflective thinking2) Acti

2、vity-based cost systems use cost centers to accumulate costs.Answer: FALSEExplanation: Activity-based cost systems use cost pools to accumulate costs.Diff: 1Terms: cost poolsObjective: 1AACSB: Reflective thinking3) Traditional cost systems are likely to overcost simple products with higher productio

3、n volume.Answer: TRUEDiff: 2Terms: traditional costing systemObjective: 1AACSB: Reflective thinking4) The first step in designing an activity-based cost system is to develop an activity dictionary.Answer: TRUEDiff: 1Terms: activity based costingObjective: 1AACSB: Reflective thinking5) Traditional co

4、st systems are likely to overcost complex products with lower production volume.Answer: FALSEExplanation: Traditional costing systems are likely to undercost complex products with lower production volume.Diff: 2Terms: activity based costingObjective: 1AACSB: Reflective thinking6) _ and _ are typical

5、ly the measures of volume of activity in traditional volume-based cost systems.A) Practical capacity; products soldB) Direct labor hours; practical capacityC) Direct labor hours; machine hoursD) Square footage; machine hoursAnswer: CDiff: 1Terms: traditional costing system, cost driverObjective: 1AA

6、CSB: Reflective thinking7) Traditional cost systems distort product costs because:A) they do not know how to identify the appropriate units.B) excess capacity costs are ignored.C) they emphasize financial accounting requirements.D) they use unit-level cost drivers to allocate overhead costs to produ

7、cts.Answer: DDiff: 2Terms: traditional costing system, overheadObjective: 1AACSB: Reflective thinking8) Unit-level cost drivers in traditional cost systems distort product costs because they:A) assume that all overhead activities affect all products.B) recognize specific activities that are required

8、 to produce a product.C) do not consistently record costs.D) fail to measure the correct amount of total costs for all products.Answer: ADiff: 2Terms: traditional costing system, cost driverObjective: 1AACSB: Reflective thinking9) Smaller cost distortions occur when the traditional cost systems unit

9、-level assignments and the alternative activity cost driver assignments:A) are different in proportion to each other.B) are similar in proportion to each other.C) are more different than alike.D) use the same cost driver units.Answer: BDiff: 2Terms: volume-based costs systems, cost driverObjective:

10、1AACSB: Reflective thinking10) The use of unit-related measures to assign overhead costs is more likely to:A) undercost high-volume products.B) undercost specialty low-volume products.C) undercost complex products.D) undercost specialty low-volume and complex products.Answer: DDiff: 2Terms: volume-b

11、ased costs systems, overheadObjective: 1AACSB: Reflective thinking11) Misleading product cost numbers are MOST likely the result of misallocating:A) direct material costs.B) direct manufacturing labor costs.C) overhead costs.D) All of the above are correct.Answer: CDiff: 1Terms: overheadObjective: 1

12、AACSB: Reflective thinking12) Undercosting of a product is MOST likely to result from:A) misallocating direct labor costs.B) underpricing the product.C) overcosting another product.D) understating total product costs.Answer: CDiff: 1Terms: overheadObjective: 1AACSB: Reflective thinking13) Overcostin

13、g a particular product may result in:A) gain of market share for the product.B) higher profits per unit for the product.C) operating efficiencies.D) overstating total costs of all the products.Answer: BDiff: 1Terms: overheadObjective: 1AACSB: Reflective thinking14) Explain how traditional cost syste

14、ms, using only unit level cost drivers, distort product costs.Answer: Unit-related measures can distort product costing because the demand for overhead activities may be driven by batch-related, product-sustaining, customer-sustaining, or business-sustaining activities. Volume may not drive the dema

15、nd for overhead activities, cost distortions are larger when the traditional systems unit-level cost drivers and the alternative activity cost drivers differ proportionately more from each other. Traditional cost systems are likely to undercost specialty products with lower production volumes (relat

16、ively fewer units of production) and overcost standard products with higher production volumes (relatively greater units of production).Diff: 2Terms: activity based costing, cost driver, traditional costing systemObjective: 1AACSB: Reflective thinkingMAL: This question is not available in MyAccounti

17、ngLab.15) Explain how traditional cost systems, using only unit level cost drivers, distort customer costs.Answer: Unit-related measures can distort customer costing because different customers may have different demands for overhead activities. Cost distortions are larger when the traditional cost

18、systems unit-level cost drivers and the alternative activity cost drivers differ proportionately more from each other. Traditional cost systems are likely to undercost customers who demand specialized services and concessions.Diff: 2Terms: activity based costing, cost driver, traditional costing sys

19、temObjective: 1AACSB: Reflective thinkingMAL: This question is not available in MyAccountingLab.Objective 21) Product lines that produce different variations (models, styles, or colors) often require specialized activities that translate into lower overhead costs for each product line.Answer: FALSEE

20、xplanation: Product lines that produce different variations (models, styles, or colors) often require specialized activities that translate into higher costs for each product line.Diff: 2Terms: activity based costingObjective: 2AACSB: Reflective thinking2) Specialized engineering drawings of product

21、s, product quality specifications and quality control testing, inventoried raw materials, and material control systems are examples of activities that equate to greater overhead costs.Answer: TRUEDiff: 1Terms: activity based costing, overheadObjective: 2AACSB: Reflective thinking3) It is important t

22、hat the product costs reflect as much of the diversity and complexity of the manufacturing process so that:A) product costs will reflect their relative consumption of resources.B) better information related to resource constraints can be captured and communicated.C) there is more likelihood of cost

23、distortions.D) All of the above are correct.Answer: ADiff: 1Terms: activity based costingObjective: 2AACSB: Reflective thinking4) Activity-based costing (ABC) can eliminate cost distortions because ABC:A) develops cost drivers that directly link the activities performed to the products manufactured.

24、B) establishes multiple cost pools.C) employs capacity-related cost drivers.D) recognizes interactions between different departments in assigning overhead costs.Answer: ADiff: 1Terms: activity based costing, cost driversObjective: 2AACSB: Reflective thinking5) Different products consume different pr

25、oportions of overhead costs because of differences in all of the following EXCEPT:A) sales prices.B) customers customization specifications.C) setup times.D) product design.Answer: ADiff: 1Terms: activity based costing, overheadObjective: 2AACSB: Reflective thinking6) Which of the following is a sig

26、n that an ABC system may be useful?A) There are small amounts of overhead costs.B) Products make diverse demands on resources because of differences in volume, process steps, batch size, or complexity.C) Products a company all show large profits.D) Operations throughout the plant are fairly similar.

27、Answer: BDiff: 1Terms: activity based costingObjective: 2AACSB: Reflective thinking7) Units of production are most appropriate as an overhead cost assignment base when:A) it is a service department.B) only one product is manufactured.C) direct labor costs are low.D) factories produce a complex and v

28、aried mix of products.Answer: BDiff: 1Terms: overheadObjective: 2AACSB: Reflective thinking8) Product lines that produce different variations (models, styles, or colors) often require specialized activities that translate into:A) lower overhead costs for each product line.B) decisions to drop produc

29、t variations.C) more favorable direct labor cost ratios.D) more overhead costs for each product line.Answer: DDiff: 2Terms: activity based costing, overheadObjective: 2AACSB: Reflective thinking9) When a company manufactures a variety of complex products, several unit-level cost drivers can capture

30、the complexity and diversity of the production processes:A) always.B) frequently.C) infrequently.D) never.Answer: DDiff: 1Terms: cost driverObjective: 2AACSB: Reflective thinking10) Greater manufacturing overhead costs are associated with:A) specialized engineering drawings of new products.B) qualit

31、y specifications for products and quality control testing.C) inventoried materials and material control systems.D) All of the above are correct.Answer: DDiff: 1Terms: overheadObjective: 2AACSB: Reflective thinking11) A company produces three products; if one product is undercosted then:A) one produc

32、t is overcosted.B) one or two products are overcosted.C) two products are overcosted.D) no products are overcosted.Answer: BDiff: 1Terms: overheadObjective: 2AACSB: Reflective thinking12) In general, factories producing a more varied and complex mix of products have higher costs than factories produ

33、cing only a narrow range of products. Explain why this is generally true.Answer: Factories producing a more varied and complex mix of products have higher costs than factories producing only a narrow range of products because more variations and complexities require more activities. The Ericson Ice

34、Cream Company in the text case provides an illustration of why producing more flavors of ice cream adds higher costs. Extending the product lines into new flavors requires special additional activities that translate into greater overhead costs for the new flavors.Diff: 2Terms: activity based costin

35、gObjective: 2AACSB: Reflective thinkingMAL: This question is not available in MyAccountingLab.13) Provide at least two examples of types of costs that would be higher for factories producing a more varied and complex mix of products than for factories producing only a narrow range of products.Answer

36、: Specialized engineering drawings of products, quality specifications for products and quality control testing, inventoried materials and material control systems, and scheduling are examples of activities that equate to greater overhead costs. Different products consume different proportions of ma

37、nufacturing overhead costs because of differences in customers customization specifications, setup times, and product designs.Diff: 2Terms: activity based costing, cost driverObjective: 2AACSB: Reflective thinkingMAL: This question is not available in MyAccountingLab.Objective 31) For activity-based

38、 cost systems, activity costs are assigned to products in the proportion of the demand they place on activity resources.Answer: TRUEDiff: 1Terms: activity based costingObjective: 3AACSB: Reflective thinking2) An activity-based costing system is necessary for costing services that are different.Answe

39、r: TRUEDiff: 1Terms: activity based costingObjective: 3AACSB: Reflective thinking3) ABC systems seek an activity cost allocation driver that has a cause-and-effect relationship with costs in the cost pool.Answer: TRUEDiff: 1Terms: activity based costingObjective: 3AACSB: Reflective thinking4) In gen

40、eral, the selection of activity cost drivers requires making trade-offs between accuracy and the cost of measurement.Answer: TRUEDiff: 1Terms: activity based costing, cost driverObjective: 3AACSB: Reflective thinking5) The selection of activity cost drivers requires making choices related to the usa

41、ge of transaction drivers, duration drivers, and intensity drivers.Answer: TRUEDiff: 1Terms: activity based costing, cost driverObjective: 3AACSB: Reflective thinking6) The goal of a properly constructed ABC system is to:A) have the most accurate cost system.B) identify more indirect overhead costs.

42、C) develop the best cost system for an economically reasonable cost.D) have separate allocation rates for each department.Answer: CDiff: 1Terms: activity based costingObjective: 3AACSB: Reflective thinking7) Designing an activity-based cost system includes:A) classifying as many costs as indirect co

43、sts as is feasible.B) creating as many cost pools as possible.C) identifying the activities performed by the plants resources.D) seeking a broader focus rather than detail.Answer: CDiff: 1Terms: activity based costingObjective: 3AACSB: Reflective thinking8) Design of an activity-based cost system re

44、quires that:A) the job bid process be redesigned.B) resource costs be linked to the activities performed.C) the cost of activities be linked to cost objects.D) resource costs be linked to the activities performed and the cost of activities be linked to cost objects.Answer: DDiff: 1Terms: activity ba

45、sed costingObjective: 3AACSB: Reflective thinking9) Which of the following statements about activity-based costing is NOT true?A) ABC is useful for allocating marketing and distribution costs.B) ABC is more likely to result in major differences from traditional costing systems if the firm manufactur

46、es only one product rather than multiple products.C) ABC seeks to distinguish batch-related, product-sustaining, and business-sustaining costs, especially when they are not proportionate to one another.D) ABC differs from traditional costing systems in that products are not cross-subsidized.Answer:

47、BDiff: 1Terms: activity based costing, traditional costing systemObjective: 3AACSB: Reflective thinkingSchiff Company produces seven products. PQ-6 costs $240.00 per unit under their traditional cost system using one cost driver. An analysis of the activities and their costs revealed that three cost

48、 drivers would be used under the new ABC system. The new cost of PQ-6 was determined to be $190.00 per unit.10) The total amount of overhead costs assigned to product PQ-6 using the traditional cost method is _ the total amount assigned using ABC.A) more thanB) less thanC) identical toD) approximate

49、ly the sameAnswer: ADiff: 1Terms: activity based costing, overhead, traditional costing systemObjective: 3AACSB: Analytical skills11) Given this change in the cost:A) PQ-6 costing results under the new system depend on the adequacy and quality of the estimated sales and sales revenue used by the sys

50、tem.B) PQ-6 will now command a higher sales price.C) PQ-6 will now command a lower sales price.D) Schiffs other products will be assigned a smaller share of overhead costs.Answer: CDiff: 1Terms: activity based costing, overheadObjective: 3AACSB: Analytical skillsWebster Company provides the followin

51、g ABC costing information: ActivitiesTotal Costs Activity-cost driversAccount inquiry hours$250,00010,000 hoursAccount billing lines$125,0005,000,000 linesAccount verification accounts $50,00050,000 accountsCorrespondence letters$ 25,0005,000 letters Total costs$450,000The above activities are used

52、by Departments A and B as follows:Department A Department BAccount inquiry hours1,000 hours3,000 hoursAccount billing lines200,000 lines300,000 linesAccount verification accounts10,000 accounts 8,000 accountsCorrespondence letters1,000 letters1,500 letters12) How much of the account inquiry cost wil

53、l be assigned to Department A?A) $5,000B) $25,000C) $75,000D) $250,000Answer: BDiff: 2Terms: activity based costing, overhead, cost driver rateObjective: 3AACSB: Analytical skills13) How much of account verification costs will be assigned to Department A?A) $10,000B) $25,000C) $40,000D) $50,000Answe

54、r: ADiff: 2Terms: activity based costing, overhead, cost driver rateObjective: 3AACSB: Analytical skills14) How much of the account billing costs will be assigned to Department B?A) $7,500B) $12.500C) $15,000D) $25,000Answer: ADiff: 2Terms: activity based costing, overhead, cost driver rateObjective

55、: 3AACSB: Analytical skillsTonys Skate Corporation manufactures two models of skate boards: a standard and a deluxe model. The following activity and cost information has been compiled.ProductNumber of SetupsNumber of ComponentsNumber of total Direct Labor HoursStandard2010375Deluxe3015225Overhead c

56、osts$50,000$70,00015) Assume a traditional costing system applies the $120,000 of overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model?A) $40,000B) $75,000C) $50,000D) $70,500Answer: BDiff: 2Terms: traditional costing system, overhead,

57、 cost driver rateObjective: 3AACSB: Analytical skills16) Number of setups and number of components are identified as activity-cost drivers for overhead costs. Assuming an activity-based costing system is used, what is the total amount of overhead costs assigned to the standard model?A) $20,000B) $29

58、,000C) $48,000D) $60,000Answer: CDiff: 2Terms: activity based costing, overhead, cost driver rateObjective: 3AACSB: Analytical skillsBlitzer Enterprises has identified three cost pools and three corresponding cost drivers to allocate overhead costs. The following estimates are provided for the comin

59、g year:Cost PoolOverhead Costs Cost driverActivity levelSupervision of direct labor$480,000Direct labor-hours800,000Machine maintenance$220,000Machine-hours550,000Facility rent$260,000Square feet of area100,000 Total overhead costs$960,000The accounting records show the Gergen Job consumed the follo

60、wing resources:Cost driverActual levelDirect labor-hours600Machine-hours2,100Square feet of area9017) If direct labor-hours are considered as the only overhead cost driver, what is the single cost driver rate for Blitzer Enterprises?A) $0.60 per direct labor-hourB) $0.80 per direct labor-hourC) $1.2