Activity Based Costing MCQs

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Which of the following costs should not be included in product costs for internal management reports that are used for decision-making?






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Which of the following would probably be the most accurate measure of activity to use for allocating the costs associated with a factory’s purchasin...






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Guerra Electronics manufactures a variety of electronic gadgets for use in the home. Which of the following would probably be the most accurate measur...






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The labor time required to assemble a product is an example of a:






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Production order processing is an example of a:






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Assembling a product is an example of a:






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Setting up a machine to change from producing one product to another is an example of a:






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Designing a new product is an example of a:






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The plant manager’s salary is an example of a:






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Machining a part for a product is an example of a:






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If substantial batch-level or product-level costs exist, then overhead allocation based on a measure of volume such as direct labor-hours alone:






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If a cost object such as a product or customer has a negative yellow margin, then:






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If a cost object such as a product or customer has a negative red margin, then:






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If a cost object such as a product or customer has a positive yellow margin, then: A) B) C) D)






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An activity-based costing system uses which of the following procedures?






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An activity that is consumed by a final cost object, such as a product or customer, is called a(n):






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All of the following are non-unit-based activity drivers EXCEPT






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If activity-based costing is used, modifications made by engineering to the product design of several products would be classified as a






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Which of the following statements about activity-based costing is not true?