A) abc systems provide less insight than timeless systems into the monitoring of the indirect costs.

B) ABC equipment are offered by supervisors for strategic decisions rather than for inventory valuation in merchandising companies.

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C) organization companies find good value indigenous ABC due to the fact that a vast majority of their price structure is composed of direct costs.

D) ABC solution is an important for pricing decisions yet not because that understanding, managing, and also reducing prices in federal government institutions.

 

2) The distinct feature of one ABC mechanism is the focus on ________.

A) costing individual jobs

B) department indirect-cost rates

C) multiple-cost pools

D) individual tasks

 

3) i m sorry of the adhering to is a disadvantage of one activity-based costing system?

A) that classifies some indirect expenses as straight costs.

B) that assumes all expenses as straight costs.

C) It demands activity-cost prices to it is in updated regularly.

D) it ignores direct expenses of a product.

Answer the following questions making use of the info below:

 

Luzent Corporation has two departments, tiny and Large. Main costs might be allocated to the 2 departments in various ways.

 

Small DepartmentLarge Department

Square footage6,75017,250

Number that employees1,120480

Sales$350,000           $1,750,000

 

4) If advertising price of $483,000 is allocated ~ above the communication of sales, the cost per expense driver price would it is in ________.

A) $0.22 every dollar of sales

B) $0.23 per dollar of sales

C) $0.25 per dollar the sales

D) $0.24 every dollar of sales

 

5) If full advertising expense of $483,000 is allocated on the basis of sales, the amount allocated come the big Department would certainly be ________.

A) $407,500

B) $405,000

C) $402,500

D) $405,250

 

6) If total payroll processing expenses of $64,000 are allocated ~ above the communication of number of employees, the quantity allocated come the little Department would be ________.

A) $44,800

B) $48,400

C) $46,200

D) $45,600

7) If total payroll processing costs of $64,000 space allocated on the basis of number of employees, the lot allocated come the big Department would certainly be ________.

A) $18,400

B) $19,200

C) $17,800

D) $19,400

 

8) If full rent expense of $180,000 is allocated top top the communication of square footage, the amount allocated come the little Department would be ________.

A) $50,525

B) $50,625

C) $50,725

D) $50,825

 

9) If total rent expense of $180,000 is allocated ~ above the basis of square footage, the lot allocated to the big Department would be ________.

A) $129,175

B) $129,475

C) $129,275

D) $129,375

Answer the complying with questions using the info below:

 

Stark Corporation has two departments, auto Rental and Truck Rental. Central costs may be allocated come the two departments in various ways.

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Car Rental               Truck Rental

Number the Vehicles in fleet850 430

Number that employees12575

Sales$750,000$375,000

10) If administrative expense that $62,500 is allocated on the communication of variety of employees, the expense per expense driver price would it is in ________.