Which of the following items would be classified as a volume-level cost in an activity-based cost management (ABM) system
$5,344
$5,364
$6,900
$6,964
2. Question : Which of the following items would be classified as a volume-level cost in an activity-based cost management (ABM) system?
Student Answer:
indirect materials
production supervisor's salary
depreciation on factory building
research and development
Student Answer:
$38,000.
$47,900.
$27,230.
$36,230.
Student Answer:
17,500.
16,500.
15,000.
13,000.
5. Question : Which of the following service department cost allocation
methods is most widely used by manufacturing companies?
Student Answer:
reciprocal method
direct method
step method
6. Question : The controllability concept states that managers should be held
responsible for
Student Answer:
all items over which they have decision-making authority.
costs and revenues, but not investments in assets used in
their division.
only items that are allocated to their divisions on a per-unit
basis.
fixed compensation items, but not contingent compensation
items
7. Question : Which of the following service departments would use space
occupied (square footage) to allocate its costs to user
departments?
Student Answer:
Material Handling
Cafeteria
Custodial Services
Cost Accounting
Engineering
8. Question : Which of the following activities is most likely to be classified as
value-added for a manufacturing company?
Student Answer:
storing
ordering
inspecting
assembling
9. Question : Which of the following is not a characteristic of a decentralized
organization?
Student Answer:
better use of local knowledge
better use of top management's time
reduced response time to environmental changes
more decisions made by relatively few individuals
10. Question : Which of the following items would be classified as a batch-level
cost in an activity-based cost management (ABM) system?
Student Answer:
indirect labor
production supervisor's salary
depreciation on factory building
machinery set-up costs
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