In the first stage of ABC, a cost driver is selected for each activity cost pool. True or False?
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In the first stage of ABC, a cost driver is selected for each activity cost pool. True or False?
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- In the blank next to the following terms, place the letter A through D corresponding to the best description of that term. 1. Activity 2. Activity driver 3. Cost pool 4. Cost object A. Measurement associated with an activity. B. A group of costs that have the same activity drivers. C. Anything to which costs will be assigned. D. A task that causes a cost to be incurred.Discuss the history of ABC method (Use references if you use any) Define the following with examples: a) Activity Rate b) Cost DriverWhich of the following represent the right process order for cost allocation: Select one: O a. Develop the cost allocation formula, calculate the indirect cost rate, then allocate cost to the cost object O b. Develop the cost allocation formula, allocate cost to the cost object, then calculate the indirect cost rate O C. Allocate cost to the cost object, develop the cost allocation formula, then calculate the indirect cost rate O d. Calculate the indirect cost rate, develop the cost allocation formula, then allocate cost to the cost object
- In a two-stage activity-based costing model, stage one involves Select one: O O A. assigning activity costs to cost objects. B. assigning indirect resource costs to activity pools. C. measuring the various indirect resource costs and determining resource drivers. D. assigning direct costs to cost objects.In developing an ABC system, what is the last step? Identify the primary activities and estimate a total cost pool for each. Select an allocation base for each activity. Allocate the costs to the cost object using the activity cost allocation rates. Calculate an activity cost allocation rate for each activity.For the following activities and their associated resources, identify the following: (1) a cost driver, (2) flexible resources, and (3) committed resources. Also, label each resource as one of the following with respect to the cost driver: (a) variable and (b) fixed.
- When is an activity-based costing system better than a traditional allocation system?Identify appropriate cost drivers for these cost pools: A. setup cost pools B. assembly cost pool C. supervising cost pool D. testing cost poolExplain how a scatter graph is used to identify and measure cost behavior.
- Which is not a task typically associated with ABC systems? A. calculating the overhead application rate for each cost pool B. applying a single cost rate C. identifying a cost driver D. more correctly allocating overhead costsA cost allocation rule is the method or process used to assign the costs in the ________ to the ________.cost object; cost poolcost pool; cost objectcost pool; opportunity costcost allocation; cost poolCost estimation is the process of a. Summarizing pwst costs into fixed variable components. b.Estimating the relationship between costs and the costs drivers that cause those costs. c. Documenting costs in terms of direct and indirect costs. d. All of the choices