12. In activity-based costing, the total activity in an activity cost pool can b
ID: 2353354 • Letter: 1
Question
12.In activity-based costing, the total activity in an activity cost pool can be computed by:
A) dividing the activity cost pool's activity rate by the direct labor-hours required to make a product.
B) multiplying the total overhead cost in the activity cost pool by the activity cost pool's activity rate.
C) dividing the total overhead cost in the activity cost pool by the activity cost pool's activity rate.
D) multiplying the activity cost pool's activity rate by the direct labor-hours required to make a product.
15.
Which of the following is not an advantage of Activity Based Costing (ABC) over traditional volume based costing systems?
A)
ABC is less costly to implement than traditional systems
B)
All of the above are advantages of ABC
C)
ABC is less likely than a traditional system to undercost complex products.
D)
ABC may lead to improvement in cost control as managers are charged for using activities
16.
The thing for which a cost is being calculated is a(n)
A) cost driver
B) cost object
C) cost pool
D) sunk cost
Explanation / Answer
C) dividing the total overhead cost in the activity cost pool by the activity cost pool's activity rate. B) All of the above are advantages of ABC B) cost object
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