题目

Which two of the following statements about activity based costing are true? 

A

Implementation of ABC is unlikely to be cost effective when variable production costs are a low proportion of total production costs.  

B

 In a system of ABC, for costs that vary with production levels, the most suitable cost driver is likely to be direct labour hours or machine hours. 

C

 Activity based costs are the same as relevant costs for the purpose of short-run decision making. 

D

 Activity based costing is a form of absorption costing. 

扫码查看暗号,即可获得解锁答案!

点击获取答案
Chapter2aActivitybasedcosting

Implementation of ABC is likely to be cost effective when variable production costs are a low proportion of total production costs and overhead costs, traditionally assumed to be fixed costs, are a large proportion of total production costs. 

At a unit level, the cost driver for production-related overheads is likely to be direct labour hours or machine hours. 

It is a mistake to associate activity based costs with the variable costs of an activity. Some of the costs may be variable in the short run, but others are not. So ABC costs should not be treated as relevant costs for the purpose of short-term decision making. It is more appropriate to think of ABC as a form of absorption costing, where overheads are allocated to activities and products on a more meaningful basis than with traditional absorption costing. 

多做几道

Which two of the following statements about activity based costing are true? 

A

Implementation of ABC is unlikely to be cost effective when variable production costs are a low proportion of total production costs.  

B

 In a system of ABC, for costs that vary with production levels, the most suitable cost driver is likely to be direct labour hours or machine hours. 

C

 Activity based costs are the same as relevant costs for the purpose of short-run decision making. 

D

 Activity based costing is a form of absorption costing. 

Which two of the following statements about activity based costing are true? 

A

ABC recognises the complexity of modern manufacturing by the use of multiple cost drivers 

B

ABC establishes separate cost pools for support activities 

C

ABC reapportions support activity costs 

D

BC is an appropriate costing system when overheads vary with time spent on production

ABC is felt to give a more useful product cost than classic absorption costing (with overheads absorbed on labour hours) if which of the following two apply? 

A

Labour costs are a relatively minor proportion of total costs 

B

Overheads vary with many different measures of activity 

C

Overheads are difficult to predict 

D

Cost drivers are difficult to identify 

Which two of the following costs are likely to rise when just in time (JIT) manufacturing is introduced? 

A

Set-up costs 

B

Raw material handling costs 

C

Raw material storage costs 

D

Customer order costs 

Which of the following statements about target costing is not true? 

A

Target costing is better suited to assembly orientated industries than service industries that have a large fixed cost base.  

B

Costs may be reduced in target costing by removing product features that do not add value. 

C

 A target cost gap is the difference between the target cost for a product and its projected cost. 

D

 Products should be discontinued if there is a target cost gap. 

最新试题

该科目易错题

该题目相似题