Accounting for lean operations requires fewer transactions because a. combined materials and conversion costs are transferred to finished goods b. costs are accumulated in one department and then transferred to the next department c. costs are transferred from department to department allowing for better control of costs d. large batches of inventory are combined into a smaller number of transactions

Accounting for lean operations requires fewer transactions because a. combined materials and conversion costs are transferred to finished goods b. costs are accumulated in one department and then transferred to the next department c. costs are transferred from department to department allowing for better control of costs d. large batches of inventory are combined into a smaller number of transactions

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14MC: Activity-based costing is preferable in a system: when multiple products have similar product...

See similar textbooks

Similar questions

Activity-based costing is preferable in a system: when multiple products have similar product volumes and costs with a large direct labor cost as a percentage of the total product cost with multiple, diverse products where management needs to support an increase in sales price
Which of the following results in fewer transactions in lean accounting? a. The distinction between direct and indirect costs is eliminated. Ob. There is less movement of inventory between departments. Oc. All manufacturing costs are combined into one account called Raw and In Process Inventory. Od. all of these choices
1. Customer profitability analysis allows managers to do which of the following:a. Identify the closest competitor.b. Focus solely on service calls.c. Sell to higher end customers.d. Manage each customers costs-to-serve. 2. Transferred-in units and cost flows are similar to:a. Materials added at the end of the process.b. Materials added at the beginning of the process.c. Conversion costs added at the end of the process.d. Conversion costs added at the beginning of the process.3. In making decisions about whether to sell at split-off or process joint products further, the allocation of joint manufacturing costs is treated as a(n):a. Essential costb. Weighted average costc. Sunk costd. Period cost 4. Cost allocation provides a service firm a basis for evaluating the:a. Cost and profitability of its services.b. Value of its services.c. Manufacturing costs for the company.d. The exact cost of each department 5. Customer lifetime value is concerned with which of the following:a.…
. As more warehouses are added to the system, what would we expect to happen to thefollowing?a. Transportation costs.b. Inventory costs.c. Material handling costs.d. Packaging costs.e. Total costs.f. System service capability.
For process costing, the FIFO method provides a major advantage over the weighted-average method in that: A. the calculation of equivalent units is less complex under the FIFO method. B. the FIFO method treats units in the beginning inventory as if they were started and completed during the current period. C. the FIFO method separates the work done during the current period to provide measurements of work done during the current period. D. the FIFO method considers units in the work done in the ending work-in-process inventories. E. the FIFO method more correctly computes the equivalent units of direct materials when they are added at the beginning of the production process.
In a process costing system, which of the following would be TRUE? a.There is no need to use time tickets to assign costs to processes. b.There is no need to track materials to processes. c.A process costing system is more expensive to maintain because it has more work-in-process accounts. d.All of these choices are true.
Process costing is used to account for: Answer A finished goods that are refined and processed further. B. large numbers of products that are produced in a non-repetitive process c. small numbers of products that are produced in batches. D. Large numbers of identical products that are produced in a continuous manufacturing environment. E. raw materials that are converted directly to finished goods.
Which of the following factors is NOT considered to have influenced the development of activity-based costing? a. Increase in direct costs as a proportion of total product costs. b. Increase in overhead costs as a proportion of total product costs. c. Availability of sophisticated accounting software that provides accurate and detailed cost information on a timely basis. d. Diversity of products with a mix of high and low volume products.
Having one or more of the firm's activities performed by another firm or individual in the supply or distribution chain is called: a) outsourcing. b) responsibility centers. c) activity-based costing. d) lean accounting.
Typically, less accurate product costing information is produced by assigning costs using-Activity-based rates; Volume-based, departmental rates; All of the choices produce equally accurate product costing information; Volume-based, plantwide rates
Please explain thoroughly with examples. Which statement(s) is True/False and why? If none are true, please restate them to be true. 1. When a company implements activity-based costing, manufacturing overhead cost is often shifted from low volume products to high volume products, with a higher unit cost resulting for the high volume products. 2. When a company implements activity-based costing, manufacturing overhead cost is often shifted from low volume products to high volume products, with a higher unit cost resulting for the low volume products. 3. When a company implements activity-based costing, manufacturing overhead cost is often shifted from high volume products to low volume products, with a higher unit cost resulting for the high volume products. 4. When a company implements activity-based costing, manufacturing overhead cost is often shifted from high volume products to low volume products, with a higher unit cost resulting for the low volume products.
Which of the following is false about activity-based costing? Implementing an activity-based costing system is more costly than implementing a traditional cost allocation system. In ABC, the assumption is that activities use resources or cause costs. An activity-based costing system relies only on volume measures such as direct labor hours to allocate all overhead costs to products. A traditional cost allocation system and an activity-based costing system are used to estimate the profitability of products.