题目

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

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Chapter2aActivitybasedcosting

 The correct answers are: 

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

 ABC establishes separate cost pools for support activities 

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. 

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