Which of the complying with statements is true of a peanut-butter costing system?A) A peanut-butter costing system frequently has more-homogeneous indirect expense pools.B) A peanut-butter costing device extensively averperiods or spreads the expense of sources uniformly to price objects.C) A peanut-butter costing device assumes that all expenses are variable.D) In a peanut-butter costing system, expenses of tasks are supplied to asauthorize prices to other cost objects such as products or services based upon the tasks the commodities or solutions consume.


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Overcosting a particular product might lead to ________.A) loss of market share B) pricing the product also lowC) operating efficiencies D) understating full product costs
For a agency via diverse assets, undercosting overhead of a product will certainly lead to ________.A) misallocating straight labor prices of the product.B) misallocating straight material costs of the productC) misallocating instraight expenses of another productD) misallocating direct expenses of another product
Aqua Company produces two products-Alpha and Beta. Alpha has a high sector share and is developed in bulk. Production of Beta is based on customer orders and also is tradition designed. Also, 55% of Beta"s cost is mutual between style and also setup prices, while Alpha"s major parts of prices are direct prices. Alpha is using a solitary expense pool to alfind indirect costs. Which of the adhering to statements is true of Aqua?A) Aqua will certainly overexpense Beta"s direct expenses as it is making use of a solitary expense pool to allocate indirect costs.B) Aqua will undercost Alpha"s indirect prices because alpha has high straight costs.C) Aqua will certainly overprice Alpha"s instraight expenses as it is utilizing a solitary cost pool to alsituate indirect prices.D) Aqua will overexpense Beta"s instraight prices because beta has high indirect costs
Product-cost cross-subsidization ________.A) exists when one overcosted product results in even more than one various other product being overcostedB) indicates that if a company underexpenses even more than among its assets, it will certainly overexpense even more than one of its various other productsC) indicates that if a company underprices among its products, it will overprice at leastern one of its various other products D) exists just as soon as one overcosted product outcomes in all various other products being overcosted
An increased need for polished price systems is due to ________.A) international monopolies B) rising prices C) intense competition D) a shift toward raised straight costs
Uniformly assigning the prices of resources to cost objects when those resources are actually used in a nonunicreate method is called ________. A) activity-based costingB) uniform costingC) peanut-butter costing D) department costing
Refining a expense device contains ________.A) classifying as many type of costs as instraight prices as is feasible B) producing as many type of cost pools as possible C) identifying the activities connected in a process D) seeking a lesser level of detail
Which of the complying with is true of refinement of a costing system?A) While refining a costing system, carriers should recognize as many type of instraight expenses as is economically feasible.B) A homogeneous price pool will use multiple price motorists to allocate costs.C) It reduces the use of broad averperiods for assigning the price of sources to expense objects.D) It is most likely to yield the a lot of decision-making benefits as soon as direct prices are a high percent of full costs.
Which of the following is a reason that has actually sped up the demand for refinements to the costing system?A) The decreasing demand also for customized commodities has actually led supervisors to decrease the range of commodities and services their carriers offer.B) The use of product and also procedure modern technology has led to an increase in indirect expenses and a decrease in direct prices.C) The boosted of automated procedures has actually led to the rise in direct production expense bring about a decrease in breakeven suggest.D) The boosting competition in product sectors has actually resulted in an increase in contribution margin bring about a decrease of breakalso point.
Demand for refinements to the costing system has sped up as a result of ________.A) rise in direct costsB) decrease in product diversityC) decrease in instraight costsD) competition in product markets
Collin Inc. produces hospital tools and the setup needs differ from product to product. Collin produces its commodities based upon customer orders and also uses ABC costing. In one of its indirect price pools, setup expenses and circulation prices are pooled together. Costs in this pool are allocated making use of variety of customer orders for the easiness of costing operations. Based on the information provided, which of the following arguments is valid?A) Collin has actually clearly failed to determine as many kind of direct prices as is financially feasible.B) All expenses in a homogeneous expense pool have the very same or a comparable cause-and-impact relationship via the single price driver that is offered as the cost-alplace base for Collin.C) Collin has unnecessarily wasted sources by classifying setup and circulation costs as they can have been thought about as straight costs.D) Collin has faibrought about usage the correct cost driver as the cost-alarea base for setup costs
ABC devices produce ________.A) one large cost pool B) homogenous activity-associated price pools C) activity-price pools with a wide emphasis D) activity-cost pools containing many direct costs
Activity based costing mechanism differs from traditional costing systems in the therapy of ________.A) direct labor costsB) straight material costsC) prime costsD) indirect costs
ABC systems ________. A) highlight the different levels of activities B) limit expense motorists to devices of output C) allocate expenses based upon the overall level of task D) mainly underprice complicated products
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