FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 19: Cost Management Systems: Activity-Based, just-In-Time,

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 91

True/False

Review LaterAdd Note

Review Later

Just-in-time costing does not track the cost of products from Raw Materials Inventory to Work-in-Process Inventory to Finished Goods Inventory.

Correct Answer

verified

Show Answer

Question 92

Multiple Choice

Review LaterAdd Note

Review Later

Skipper Company manufactures toy boats and uses an activity-based costing system.The following information is provided for the month of May: Each boat consists of four parts,and the direct materials cost per boat is $7.21.There is no direct labor.What is the total manufacturing cost per boat? (Round any intermediate calculations and your final answer to the nearest cent. )

A) $15.63
B) $22.84
C) $4.43
D) $18.13

Correct Answer

verified

Show Answer

Question 93

True/False

Review LaterAdd Note

Activity-based management is not suitable for service companies as it deals with the proper allocation of manufacturing overhead costs.

The predetermined overhead allocation rate is an estimated overhead cost per unit of the allocation base and is calculated at the beginning of the accounting period.

Just-in-time costing systems use three inventory accounts: Raw Materials Inventory,Work-in-Process Inventory and Finished Goods Inventory.

All of the following are the result of producing poor-quality products except ________.

Activity-based costing refines the cost allocation process even more than traditional allocation costing systems.

Which of the following triggers manufacturing under the just-in-time management system?

Businesses should invest up front in internal and external failure costs to reduce prevention and appraisal costs.

Direct material costs and direct labor costs cannot be easily traced to products.Therefore,they are allocated to products.

The just-in-time management system results in an increase in the costs to buy,store,insure,and move inventory.

Companies which use a just-in-time management system do not benefit from a quality management system.

Camilleri,Inc.completed the production of 500 units with standard costs of $520 for direct materials and $75 for conversion costs.During the current year,it incurred $260,000 for direct materials and $44,000 for conversion costs.The company uses a just-in-time costing system.Record the adjusting entry for the amount of underallocated or overallocated conversion costs.Omit explanation.

Aviatrix Avionics makes three types of radios for small aircraft-Model A,Model B,and Model C.The manufacturing operations are mechanized,and there is no direct labor.Manufacturing overhead costs are significant,and Aviatrix has adopted an activity-based costing system.Direct materials costs per unit for each model are as follows: Aviatrix has three activities-assembly,materials management,and testing.The cost driver for assembly is machine hours.The cost driver for materials management is the number of parts,and the cost driver for testing is the number of units of product.Total costs and production volumes for the year were estimated as follows: The Model A radio requires 12 parts to construct and 20 machine hours of processing.What is the manufacturing cost to make one unit of Model A? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar. )

Which of the following statements is true of an activity-based costing system?

A furniture manufacturer has decided that its use of a single plantwide predetermined overhead allocation rate is no longer accurate.In making the transition to using multiple predetermined overhead allocation rates,which of the following statements is incorrect?

Which of the following is true about quality management systems?

The main difference between activity-based costing and traditional costing systems is that activity-based costing uses a separate allocation base for each activity.

Match each of the following activities to its most appropriate allocation base. -Inspecting finished products.

In the first step in developing an activity-based costing system for a manufacturing company,the management team must determine the activities that incur the majority of the product and period costs.