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DeVry University, AustinSSS ssweek 4_assignment

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Multiple Choice Quiz (See related pages) Results Reporter Out of 10 questions, you answered 10 correctly with a final grade of 100% 10 correct (100%) 0 incorrect (0%) 0 unanswered (0%) Your Res... ults: The correct answer for each question is indicated by a . 1 CORRECT Which of the following statements is correct? A) Activity-based costing uses a number of activity cost pools, each of which is allocated to products on the basis of direct labor-hours. B) Activity rates in activity-based costing are computed by dividing costs from the first-stage allocations by the activity measure for each activity cost pool. C) An activity-based costing system is generally easier to implement and maintain than traditional costing system. D) One of the goals of activity-based management is the elimination of waste by allocating costs to products that waste resources. Feedback: The correct answer is B (Learning Objective 1): Rather than using a single allocation base (such as direct labor-hours), activity-based costing uses a number of allocation bases for assigning costs to products (thus statement A is false). Generally, an activity-based costing system is harder (rather than easier) to implement and maintain than a traditional costing system (thus statement C is false). Rather than eliminating waste by allocating costs to products that waste resources, activity-based management is a management approach that focuses on managing activities as a way of eliminating waste and reducing delays and defects (thus statement D is false). Statement B is true. 2 CORRECT All of the following are examples of batch-level activities except: A) Clerical activity associated with processing purchase orders to produce an order for a standard product. B) Purchase order processing. C) Setting up equipment. D) Worker recreational facilities [Show More]

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