1、PAGE PAGE 98CHAPTERR 4ACTIVITTY-BASSED COOST MAANAGEMMENT SSYSTEMMSTRUE/FAALSE1.Simpply beecausee actiivity-basedd costting ssystemms empploy mmore aactiviity coost drriverss, theey proovide more accurrate pproducct cossts thhan trraditiional systeems.a.Truueb.Fallse2.A toop-sellling produuct miight

2、 aactuallly reesult in loosses for tthe coompanyy.a.Truueb.Fallse3.Tradditionnal syystemss are likelly to underrcost compllex prroductts witth lowwer prroducttion vvolumee.a.Truueb.Fallse4.Usinng mulltiplee unitt-leveel cosst driivers generrally consttitutees an effecctive activvity-bbased cost syst

3、eem.a.Truueb.Fallse5.The Coopeer Penn Comppany ccase iin thee textt provvides an illlustrrationn of wwhy faactoriies prroduciing a more varieed mixx of pproduccts haave hiigher costss thann facttoriess prodducingg onlyy a naarrow rangee of pproduccts.a.Truueb.Fallse6.Prodduct llines that produuce di

4、iffereent vaariatiions (modells, sttyles, or ccolorss) oftten reequiree speccializzed acctivitties tthat ttransllate iinto llower suppoort coosts ffor eaach prroductt linee.a.Truueb.Fallse7.Speccializzed enngineeering drawiings, qualiity sppecifiicatioons annd tessting, inveentoriied maateriaals, aa

5、nd maateriaal conntrol systeems arre exaampless of aactiviities that equatte to greatter suupportt costts. a.Truueb.Fallse8.For activvity-bbased cost systeems, aactiviity coosts aare asssigneed to produucts iin thee propportioon of the ddemandd theyy placce on activvity rresourrces. a.Truueb.Fallse9

6、.An aactiviity-baased ccostinng sysstem iis neccessarry forr costting sservicces thhat arre simmilar.a.Truueb.Fallse10.ABCC systtems sseek aa costt alloocatioon basse thaat hass a caause-aand-efffect relattionshhip wiith coosts iin thee costt pooll.a.Truueb.Fallse11.In generral, tthe seelectiion off

7、 actiivity cost driveers reequirees makking ttrade-offs betweeen acccuraccy andd the cost of meeasureement.a.Truueb.Fallse12.Thee seleectionn of aactiviity coost drriverss requuires makinng chooices relatted too the usagee of ttransaactionn drivvers, durattion ddriverrs, annd inttensitty driivers.a.

8、Truueb.Fallse13.Redducingg the numbeer of produuctionn runss provvides an ecconomiic bennefit even thouggh ressourcees remmain aat thee samee leveel.a.Truueb.Fallse14.An easy way tto impplemennt an effecctive activvity-bbased costiing syystem is too buy a preepackaaged AABC sooftwarre pacckage.a.Tru

9、ueb.Fallse15.Acttivityy-baseed cossting helpss to iidentiify vaariouss actiivitiees thaat expplain why ccosts are iincurrred.a.Truueb.Fallse16.ABCC reveeals oopporttunitiies foor impprovinng thee way work is doone.a.Truueb.Fallse17.Usiing acctual driveer quaantitiies raather than practtical capaccit

10、y tto asssign pproducct cossts caan leaad to improovemennts inn prodduct ccosts.a.Truueb.Fallse18. Prracticcal caapacitty is used as thhe dennominaator ffor acctivitty driiver ccalcullationns to avoidd disttortioons caaused by thhe asssignmeent off exceess caapacitty cossts too the produucts. a.Truu

11、eb.Fallse19.Unuused ccapaciity shhould be trreatedd as aa geneeral ccost tto be shareed acrross aall prroductt linees.a.Truueb.Fallse20.Cosst driiver rrates calcuulatedd usinng acttual wwork pperforrmed iincludde an alloccationn for the ccost oof ressourcees useed andd for unuseed cappacityy.a.Truue

12、b.Fallse21.Asssigninng sellling and ddistriibutioon cossts too prodduct llines is beecominng morre impportannt beccause of cuustomeer reqquestss for custoomizedd servvices.a.Truueb.Fallse22.Thee costts of markeeting, sellling, and ddistriibutioon exppensess havee beenn decrreasinng rappidly in reece

13、nt yearss.a.Truueb.Fallse23. Cuustomeers whho demmand llow prrices and ccustommized serviices aare thhe mosst proofitabble cuustomeers.a.Truueb.Fallse24.In generral, sservicce commpaniees aree ideaal canndidattes foor acttivityy-baseed cossting.a.Truueb.Fallse25.Forr servvice oorganiizatioons, aacti

14、viity-baased ccost ssystemms claarify approopriatte cosst asssignmeents aand heelp too idenntify the pprofittabiliity off variious sservicce acttivitiies. a.Truueb.Fallse26.Thee mostt succcessfuul ABCC projjects occurr whenn a cllear bbusineess puurposee exissts foor buiildingg the ABC mmodel.a.Truu

15、eb.Fallse27.Wheen thee ABC systeem hass a pooor moodel ddesignn, ABCC can stilll overrcome the bbarrieers too impllementtationn and proviide ann effeectivee systtem.a.Truueb.Fallse28.An activvity-bbased costiing syystem is meeant tto perrform the rrole oof opeeratioonal ccontrool as well as too prov

16、vide tthe baasis ffor coostingg inveentoryy for finanncial reporrting.a.Truueb.Fallse29.Eveen wheen thee ABC projeect iss inittiatedd fromm the finannce grroup, a mulltifunnctionnal prrojectt teamm shouuld bee formmed.a.Truueb.Fallse30.ABCC systtems aalwayss provvide ddecisiion-maaking beneffits tth

17、at eexceedd impllementtationn costts.a.Truueb.FallseMULTIPLLE CHOOICE31.Acttivityy-baseed cossting (ABC) can elimiinate cost distoortionns beccause ABC:a.devvelopss costt drivvers tthat hhave aa causse-andd-effeect reelatioonshipp withh the activvitiess perfformedd b.esttablisshes mmultipple coost p

18、ooolsc.eliiminattes prroductt variiationnsd.reccognizzes innteracctionss betwween ddifferrent ddeparttmentss in aassignning ssupporrt cossts 32.Traaditioonal ccost ssystemms disstort produuct coosts bbecausse:a.theey do not kknow hhow too idenntify the aapproppriatee unittsb.exccess ccapaciity coost

19、s aare iggnoreddc.theey empphasizze finnanciaal acccountiing reequireementssd.theey appply avveragee suppport ccosts to eaach unnit off prodduct33.Uniit-levvel coost drriverss in ttradittionall costt systtems ddistorrt prooduct costss becaause tthey:a.asssume tthat aall suupportt actiivitiees afffec

20、t aall prroducttsb.reccognizze speecificc actiivitiees thaat aree requuired to prroducee a prroducttc.do not cconsisstentlly reccord ccostsd.faiil to measuure thhe corrrect amounnt of totall costts forr all produucts34.Smaaller cost distoortionns occcur whhen thhe traaditioonal ssystemms unnit-leeve

21、l aassignnmentss and the aalternnativee actiivity cost driveer asssignmeents:a.aree diffferentt in pproporrtion to eaach otther b.aree simiilar iin prooportiion too eachh otheerc.aree moree diffferentt thann alikked.usee the same cost driveer uniits 35.Thee use of unnit-reelatedd meassures to asssig

22、n suppoort coosts iis morre likkely tto:a.unddercosst higgh-vollume pproducctsb.unddercosst speecialtty loww-voluume prroducttsc.unddercosst commplex produuctsd.Botth (b) and (c) aare coorrectt. 36.Missleadiing coost nuumberss are MOST likelly thee resuult off misaallocaating:a.dirrect mmateriial co

23、ostsb.dirrect mmanufaacturiing laabor ccostsc.suppport costssd.Alll of tthe abbove aare coorrectt.37.Oveercostting oof a pproducct is MOST likelly to resullt froom:a.missalloccatingg direect laabor ccostsb.oveerpriccing tthe prroducttc.unddercossting anothher prroducttd.undderstaating totall prodduc

24、t ccosts38.Unddercossting a parrticullar prroductt may resullt in:a.losss of markeet shaareb.lowwer prrofitssc.opeeratinng ineefficiiencieesd.undderstaating totall prodduct ccosts39.It is immportaant thhat thhe prooduct costss refllect aas mucch of the ddiverssity aand coomplexxity oof thee manuufac

25、tuuring proceess soo thatt:oduct costss willl refllect ttheir relattive cconsummptionn of rresourrcesb.bettter iinformmationn relaated tto ressourcee consstrainnts caan be captuured aand coommuniicatedd c.theere iss lesss likeelihoood of cost distoortionnsd.Alll of tthe abbove aare coorrectt.40

26、.Acttivityy-baseed cossting (ABC) can elimiinate cost distoortionns beccause ABC:a.devvelopss costt drivvers tthat ddirecttly liink thhe acttivitiies peerformmed too the produucts mmanufaactureed b.esttablisshes mmultipple coost pooolsc.empploys capaccity-rrelateed cosst driiversd.reccognizzes innte

27、racctionss betwween ddifferrent ddeparttmentss in aassignning ssupporrt cossts 41.Diffferennt prooductss conssume ddifferrent pproporrtionss of ssupporrt cossts beecausee of ddifferrencess in aall off the folloowing EXCEPPT:a.salles prricesb.cusstomerrs cuustomiizatioon speecificcationnsc.settup tii

28、oduct desiggn42.Whiich off the folloowing is a sign that an ABBC sysstem mmay bee usefful?a.Theere arre smaall ammountss of ssupporrt cossts.b.Prooductss makee diveerse ddemandds on resouurces becauuse off diffferencces inn voluume, pprocesss steeps, bbatch size, or ccompleexity.c.Prooductss

29、 a coompanyy is lless ssuitedd to pproducce andd selll showw smalll proofits.d.Opeeratioons thhroughhout tthe pllant aare faairly simillar.43.Uniits off prodductioon aree mostt apprropriaate ass a suupportt assiignmennt basse wheen:a.it is a serviice deepartmment b.onlly onee prodduct iis mannufactt

30、uredc.dirrect llabor costss are lowd.facctoriees prooduce a commplex and vvariedd mix of prroductts 44.Prooduct liness thatt prodduce ddifferrent vvariattions (modeels, sstyless, or colorrs) offten rrequirre speecialiized aactiviities that transslate into:a.lowwer suupportt costts forr eachh prodduc

31、t llineb.deccisionns to drop produuct vaariatiionsc.morre favvorablle dirrect llabor cost ratioosd.morre suppport costss for each produuct liine 45.Wheen a ccompanny mannufacttures a varriety of coomplexx prodducts, seveeral uunit-llevel cost driveers caan cappture the ccompleexity and ddiverssity o

32、of proocessees:a.alwwaysb.freequenttlyc.inffrequeentlyd.nevver46.Greeater suppoort coosts aare asssociaated wwith:a.speecialiized eengineeeringg drawwingsb.quaality speciificattions and ttestinng c.invventorried mmateriials aand maateriaal conntrol systeemsd.Alll of tthe abbove aare coorrectt.47.A c

33、companny prooducess threee prooductss; if one pproducct is overccostedd thenn:a.onee prodduct iis unddercosstedb.onee or ttwo prroductts aree undeercosttedc.twoo prodducts are uunderccosteddd.no produucts aare unndercoosted48.Thee goall of aa propperly consttructeed ABCC systtem iss to:a.havve thee

34、mostt accuurate cost systeemb.ideentifyy moree indiirect suppoort coostsc.devvelop the bbest ccost ssystemm for an ecconomiicallyy reassonablle cosstd.havve sepparatee alloocatioon rattes foor eacch deppartmeent49.Dessigninng an activvity-bbased cost systeem inccludess:a.claassifyying aas manny coss

35、ts ass indiirect costss as iis feaasibleeb.creeatingg as mmany ccost ppools as poossibllec.ideentifyying tthe acctivitties iinvolvved inn a prrocesssd.seeeking a brooader focuss rathher thhan deetail50.Dessign oof an activvity-bbased cost systeem reqquiress thatt:a.thee job bid pprocesss be redessig

36、neddb.ressourcee costts be linkeed to the aactiviities perfoormedc.thee costt of aactiviities be liinked to coost obbjectssd.Botth (b) and (c) aare coorrectt. 51.Whiich off the folloowing stateementss abouut acttivityy-baseed cossting is NOOT truue?a.ABCC is uusefull for alloccatingg markketingg and

37、 distrributiion coosts.b.ABCC is mmore llikelyy to rresultt in mmajor diffeerencees froom traaditioonal ccostinng sysstems if thhe firrm mannufacttures only one pproducct ratther tthan mmultipple prroductts.c.ABCC seekks to distiinguissh battch-reelatedd, prooduct-sustaainingg, andd faciility-sustaa

38、iningg costts, esspeciaally wwhen tthey aare noot prooportiionatee to oone annotherr.d.ABCC difffers ffrom ttradittionall costting ssystemms in that produucts aare noot crooss-suubsidiized.THE FOLLLOWINNG INFFORMATTION AAPPLIEES TO QUESTTIONS 52 ANND 53.Cannadyy prodduces six pproduccts. SSR6 coosts

39、 $168.000 perr unitt undeer theeir trraditiional cost systeem usiing onne cosst driiver. An annalysiis of the aactiviities and ttheir costss reveealed that threee costt drivvers wwould be ussed unnder tthe neew ABCC systtem. TThe neew cosst of SR6 wwas deetermiined tto be $178.00 peer uniit.52.Thee

40、totaal amoount oof suppport costss assiigned to prroductt SR6 usingg the tradiitionaal metthod iis _ thhe tottal ammount assiggned uusing ABC.a.morre thaan b.lesss thaanc.ideenticaal tod.inddetermminatee fromm53.Givven thhis chhange in thhe cosst: a.SR66s coostingg resuults uunder the nnew syystem d

41、epennd on the aadequaacy annd quaality of thhe esttimateed cosst driivers and ccosts used by thhe sysstem.b.SR66 willl now commaand a higheer salles prrice.c.SR66 has beneffited from the nnew syystem.d.SR66 is ddefiniitely more accurratelyy costted.THE FOLLLOWINNG INFFORMATTION AAPPLIEES TO QUESTTIO

42、NS 54 THHROUGHH 56.Merrimaan Commpany proviides tthe foollowiing ABBC cossting inforrmatioon: ActiviitiesTotal CostssActivvity-ccost ddriverrsAccounnt inqquiry hourss$400,00010,0000 houursAccounnt billling liness$280,0004,0000,000 linessAccounnt verrificaation accouunts$150,00040,0000 acccountssCorr

43、esspondeence lletterrs$ 500,0004,0000 lettters TTotal costss$880,000The abbove aactiviities are uused bby Deppartmeents AA and B as folloows:Deparrtmentt ADeparrtmentt BAccounnt inqquiry hourss2,0000 hourrs4,0000 hourrsAccounnt billling liness400,0000 liines200,0000 liinesAccounnt verrificaation acc

44、ouunts10,0000 acccountss8,0000 accoountsCorresspondeence lletterrs1,0000 lettters1,6000 lettters54.Howw muchh of tthe acccountt inquuiry ccost wwill bbe asssignedd to DDeparttment A?a.$800,000b.$4000,0000c.$1660,0000d.Nonne of the aabove is coorrectt.55.Howw muchh of aaccounnt verrificaation costss

45、willl be aassignned too Depaartmennt A?a.$300,000b.$377,500c.$1550,0000d.$100,00056.Howw muchh of tthe tootal ccosts will be asssigneed to Deparrtmentt A?a.$1558,0000b.$800,000c.$2224,0000d.$8880,0000THE FOLLLOWINNG INFFORMATTION AAPPLIEES TO QUESTTIONS 57 ANND 58.Barnes Corpooratioon mannufacttures

46、 two mmodelss of oofficee chaiirs: aa stanndard and aa deluuxe moodel. The ffollowwing aactiviity annd cosst infformattion hhas beeen coompileed.Numbeer ofNumbeer ofNumbeer ofProducctSetuppsCompoonentssDirecct Labbor HooursStandaard228375Deluxee2812225Overheead coosts$20,0000$40,000057.Asssume aa tr

47、additionnal coostingg systtem apppliess the $60,0000 off overrhead costss baseed on direcct labbor hoours. What is thhe tottal ammount of ovverheaad cossts asssigneed to the sstandaard moodel?a.$244,800b.$355,200c.$377,500d.$222,50058.Nummber oof settups aand nuumber of coomponeents aare iddentiffie

48、d aas acttivityy-costt drivvers ffor ovverheaad. Asssuminng an activvity-bbased costiing syystem is ussed, wwhat iis thee totaal amoount oof oveerheadd costts asssignedd to tthe sttandarrd moddel?a.$244,800b.$355,200c.$377,500d.$222,500THE FOLLLOWINNG INFFORMATTION AAPPLIEES TO QUESTTIONS 59 THHROUG

49、HH 63.Granberrry Ennterprrises has iidentiified threee costt poolls to alloccate ooverheead coosts. The folloowing estimmates are pprovidded foor thee comiing yeear:Cost PPoolOverhhead CCostsCost driveerActivvity llevelSupervvisionn of ddirectt laboor$320,000Direcct labbor-hoours800,0000Machinne mai

50、intenaance$120,000Machiine-hoours960,0000Faciliity reent$200,000Squarre feeet of area100,0000Totall overrhead costss$640,000The acccountting rrecordds shoow thee Mosssman JJob coonsumeed thee folllowingg resoourcess:Cost ddriverrActuaal levvelDirectt laboor-houurs200Machinne-houurs1,6000Squaree feet

51、t of aarea5059.If direcct labbor-hoours aare coonsideered aas thee onlyy overrhead cost driveer, whhat iss the singlle cosst driiver rrate ffor Grranberrry Ennterprrises?a.$0.50 peer dirrect llabor-hourb.$0.80 peer dirrect llabor-hourc.$0.40 peer dirrect llabor-hourd.$1.20 peer dirrect llabor-hour60

52、.Usiing diirect laborr-hourrs as the oonly ooverheead coost drriver, whatt is tthe ammount of ovverheaad cossts alllocatted too the Mossmman Joob?a.$1660b.$1220c.$2440d.$122561.If Granbberry Enterrprisees usees thee threee acttivityy costt poolls to alloccate ooverheead coosts, what are tthe acctivi

53、tty-cosst driiver rrates for ssupervvisionn of ddirectt laboor, maachinee mainntenannce, aand faacilitty rennt, reespecttivelyy?a.$0.60 peer dlhh, $0.025 pper mhh, $0.80 peer sq ftb.$1.25 peer dlhh, $0.25 peer mh, $0.550 perr sq fftc.$0.40 peer dlhh, $0.05 peer mh, $0.220 perr sq fftd.$0.40 peer dlh

54、h, $0.125 pper mhh, $2 per ssq ft62.Usiing thhe thrree coost poools tto alllocatee overrhead costss, whaat is the ttotal amounnt of overhhead ccosts to bee alloocatedd to tthe Moossmann Job?a.$2000b.$3880c.$6775d.$177063.Whiich meethod of alllocattion pprobabbly beest esstimattes acctual overhhead c

55、costs used? Why?a.Sinngle ddirectt laboor-houurs coost drriver, becaause iit is best to alllocatte tottal coosts uuniforrmly tto inddividuual joobs.b.Sinngle ddirectt laboor-houurs coost drriver, becaause iit is easieest too anallyze aand innterprret.c.Thrree acctivitty-cosst driivers, becaause iit

56、besst refflectss the relattive cconsummptionn of rresourrces.d.Thrree acctivitty-cosst driivers, becaause pproducct cossts caan be signiificanntly ccross-subsiidizedd.THE FOLLLOWINNG INFFORMATTION AAPPLIEES TO QUESTTIONS 64 THHROUGHH 68.Ernstinng Priinterss has contrracts to coomplette weeekly ssupp

57、leementss requuired by foorty-ssix cuustomeers. FFor thhe yeaar 20005, maanufaccturinng oveerheadd costt estiimatess totaal $4220,0000 for an annnual produuctionn capaacity of 122 milllion ppages.For 20005 Ernnstingg Prinnters has ddecideed to evaluuate tthe usse of addittionall costt poolls. Affter

58、 aanalyzzing mmanufaacturiing ovverheaad cossts, iit wass deteermineed thaat nummber oof dessign cchangees, seetups, and inspeectionns aree the primaary maanufaccturinng oveerheadd costt drivvers. The ffollowwing iinformmationn was gatheered dduringg the analyysis:Cost pooolManuffacturring ooverheea

59、d coostsActivvity llevelDesign changges$ 600,000300 ddesignn channgesSetups320,00005,0000 setuupsInspecttions 40,0008,0000 insppectioons Tootal mmanufaacturiing ovverheaad cossts$420,000During 2005, two custoomers, Weallth Maanagerrs andd Heallth Syystemss, aree expeected to usse thee folllowingg pr

60、innting serviices:ActivittyWealtth MannagerssHealtth SysstemsPages660,000076,0000Design changges100Setups2010Inspecttions303864.Whaat is the ccost ddriverr ratee if mmanufaacturiing ovverheaad cossts arre connsiderred onne larrge coost poool annd aree assiigned basedd on 112 milllion pagess of pprod