Multiple choice

is a name for a system that first accumulates indirect resource costs for each of the of anorganization and then assigns the cost of each activity to the cost objects that require that 9. activity A. Activity-based management B. Activity-based costing C. Cost accounting D. Activity-based cost allocation Which of the following is not a limitation of activity-based costing A. More accurate product costs may result in increasing the B. Changing from a traditional direct labor-based selling prices of some products. product margins and other key performance indicators used by managers. costing system to an activity-based costing system chan Such changes are often resisted by managers. objects in an activity-based costing system. This results in overstated costs. costing system. C. In practice, most managers insist on fully allocating all costs to products, customers and other costing D. Main taining an activity-based costing system is more costly than maintaining a traditional direct labor-based Taking and processing customer orders is an example of a: A. Unit-level activity B. Batch-level activity C. Product-level activity. D. Customer-level activity E. Organization-sustaining activity Which of the following statements is FALSE? 12. A. Traditional costing systems generally assign only production costs to products. B. Traditional costing systems use a single cost pool for all indirect production costs. C. Traditional cost systems work well with simple production processes. D. Traditional cost systems allocate a cost pool to cost objects using multiple cost drivers. 13 Wecker Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pools Activity Rate Setting up batches. $71prme ode Processing customer orders. Assembling products.. Data concerning two products appear below: Number of batches S7.06 per assembly hour Number of customer orde. Number of assembly hours Product Vo9X 69 20 492 Product A09X 12 9 697 How much overhead cost would be assigned to Product V09X using the activity-based costing system? A. $157.87 B. $91,722.47 C. $10,385.22 D. $5,485.50