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Cpa Review School Of The Philippines

349 words - 2 pages

CPA REVIEW SCHOOL OF THE PHILIPPINESManilaMANAGEMENT ADVISORY SERVICESACTIVITY-BASED COSTINGTHEORY
1.An accounting system that collects financial and operating data on the basis of the underlyingnature and extent of the cost drivers isa.Direct costing.c.Cycle-time costing. b.Activity-based costing.d.Variable costing.2.The resource utilized by a given product divided by the total amount of the resource availableis called thea.Activity driver.c.Cost object. b.Consumption ratio.d.Sustaining activity.3.Which of the following statements is true?a.The ...view middle of the document...

Flexible manufacturing systems. b.just-in-time inventory.d.all of the above.5.Process value analysis is a key component of activity-based management that links productcosting anda.Reduction of the number of cost pools. b.Continuous improvement.c.Accumulation of heterogeneous cost pools.d.Overhead rates based on broad averages.6.An approach to developing new ways to perform existing activities is calleda.Process value analysis.c.Caveat analysis. b.Re-engineering.d.Benchmarking.7.A(n) _______________ method first traces costs to a department and then to products.a.direct costingc.traditional costing b.absorption costingd.activity-based costing8. A(n)_______________ method first traces costs to activities and then to products.a.direct costingc.traditional costing b.absorption costingdactivity-based costing9.Uniformly assigning the costs of resources to cost objects when those resources are actuallyused in a nonuniform way is calleda.overcosting.c.peanut-butter costing. b.undercosting.d.department costing.10.An objective of activity-based management is toa.eliminate the majority of centralized activities in an organization. b.reduce or eliminate non-value-added activities incurred to make a product or provide aservice.c.institute responsibility accounting systems in decentralized organizations.d.all of the above
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