cost accounting test bank chapter 5汇总..docx

cost accounting test bank chapter 5汇总..docx

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CostAccounting,15e （Horngren/Datar/Rajan）

Chapter5Activity-BasedCostingandActivity-BasedManagement

Objective5.1

1）Whichofthefollowingstatementsistrueofapeanut-buttercostingsystem?

A）Apeanut-buttercostingsystemtypicallyhasmore-homogeneousindirectcostpools.

B）Apeanut-buttercostingsystembroadlyaveragesorspreadsthecostofresourcesuniformlytocostobjects.

C）Apeanut-buttercostingsystemassumesthatallcostsarevariable.

D）Inapeanut-buttercostingsystem,costsofactivitiesareusedtoassigncoststoothercostobjectssuchasproductsorservicesbasedontheactivitiestheproductsorservicesconsume.

Answer:

B

Diff:

2

Objective:

1

AACSB:

Analyticalthinking

2）Overcostingaparticularproductmayresultin________.

A）lossofmarketshare

B）pricingtheproducttoolow

C）operatingefficiencies

D）understatingtotalproductcosts

Answer:

A

Diff:

2

Objective:

1

AACSB:

Analyticalthinking

3）Foracompanywithdiverseproducts,undercostingoverheadofaproductwillleadto________.

A）misallocatingdirectlaborcostsoftheproduct.

B）misallocatingdirectmaterialcostsoftheproduct

C）misallocatingindirectcostsofanotherproduct

D）misallocatingdirectcostsofanotherproduct

Answer:

C

Diff:

2

Objective:

1

AACSB:

Analyticalthinking

4）AquaCompanyproducestwoproducts–AlphaandBeta.Alphahasahighmarketshareandisproducedinbulk.ProductionofBetaisbasedoncustomerordersandiscustomdesigned.Also,55%ofBeta'scostissharedbetweendesignandsetupcosts,whileAlpha'smajorportionsofcostsaredirectcosts.Alphaisusingasinglecostpooltoallocateindirectcosts.WhichofthefollowingstatementsistrueofAqua?

A）AquawillovercostBeta'sdirectcostsasitisusingasinglecostpooltoallocateindirectcosts.

B）AquawillundercostAlpha'sindirectcostsbecausealphahashighdirectcosts.

C）AquawillovercostAlpha'sindirectcostsasitisusingasinglecostpooltoallocateindirectcosts.

D）AquawillovercostBeta'sindirectcostsbecausebetahashighindirectcosts.

Answer:

C

Diff:

2

Objective:

1

AACSB:

Applicationofknowledge

5）Product-costcross-subsidization________.

A）existswhenoneovercostedproductresultsinmorethanoneotherproductbeingovercosted

B）meansthatifacompanyundercostsmorethanoneofitsproducts,itwillovercostmorethanoneofitsotherproducts

C）meansthatifacompanyundercostsoneofitsproducts,itwillovercostatleastoneofitsotherproducts

D）existsonlywhenoneovercostedproductresultsinallotherproductsbeingovercosted

Answer:

C

Diff:

2

Objective:

1

AACSB:

Analyticalthinking

6）Anacceleratedneedforrefinedcostsystemsisdueto________.

A）globalmonopolies

B）risingprices

C）intensecompetition

D）ashifttowardincreaseddirectcosts

Answer:

C

Diff:

2

Objective:

1

AACSB:

Analyticalthinking

7）Uniformlyassigningthecostsofresourcestocostobjectswhenthoseresourcesareactuallyusedinanonuniformwayiscalled________.

A）activity-basedcosting

B）uniformcosting

C）peanut-buttercosting

D）departmentcosting

Answer:

C

Diff:

1

Objective:

1

AACSB:

Analyticalthinking

8）Product-costcross-subsidizationisverycommonwhencostsareuniformlyspreadacrossvariousproducts.

Answer:

TRUE

Diff:

2

Objective:

1

AACSB:

Analyticalthinking

9）Companiesthatovercostproductswillmostlikelylosemarketshare.

Answer:

TRUE

Diff:

1

Objective:

1

AACSB:

Analyticalthinking

10）Ifcompaniesincreasemarketshareinagivenproductlinebecausetheirreportedcostsarelessthantheiractualcosts,theywillbecomemoreprofitableinthelongrun.

Answer:

FALSE

Explanation:

Theactualcostswillincreasebecauseoftheadditionalsalesandtheotherproductlines（whicharesubsidizingtheundercostingofthegrowingproductline）willsuffer.Thenetresultwillbethecompanyhavingaloweroperatingincomethanitcouldhavehad.

Diff:

2

Objective:

1

AACSB:

Analyticalthinking

11）Asproductdiversityandindirectcostsincrease,itisusuallybesttoswitchawayfromabroadaveragingsystemtoanactivity-basedcostsystem.

Answer:

TRUE

Diff:

1

Objective:

1

AACSB:

Analyticalthinking

12）Peanut-buttercostingsystemisamorerefinedcostingsystemcomparedtoactivity-basedcostingsystem.

Answer:

FALSE

Explanation:

Activity-basedcostingsystemisamorerefinedcostingsystemcomparedtopeanut-buttercostingsystem.

Diff:

2

Objective:

1

AACSB:

Analyticalthinking

13）Explainhowatop-sellingproductmayactuallyresultinlossesforthecompany.

Answer:

Ifindirectcostsarenotproperlyallocatedtotheproducts,aproductmayappeartocostlessthanitactuallydoescosttoproduce.Ifthesellingpriceisbasedontheselowercosts,thesellingpricemayactuallybelowerthanthecostsneededtoproducetheproductresultinginlossesforthecompany.

Diff:

2

Objective:

1

AACSB:

Analyticalthinking

Objective5.2

1）Refiningacostsystemincludes________.

A）classifyingasmanycostsasindirectcostsasisfeasible

B）creatingasmanycostpoolsaspossible

C）identifyingtheactivitiesinvolvedinaprocess

D）seekingalesserlevelofdetail

Answer:

C

Diff:

1

Objective:

2

AACSB:

Analyticalthinking

2）Whichofthefollowingistrueofrefinementofacostingsystem?

A）Whilerefiningacostingsystem,companiesshouldidentifyasmanyindirectcostsasiseconomicallyfeasible.

B）Ahomogeneouscostpoolwillusemultiplecostdriverstoallocatecosts.

C）Itreducestheuseofbroadaveragesforassigningthecostofresourcestocostobjects.

D）Itislikelytoyieldthemostdecision-makingbenefitswhendirectcostsareahighpercentageoftotalcosts.

Answer:

C

Diff:

2

Objective:

2

AACSB:

Analyticalthinking

3）Whichofthefollowingisareasonthathasacceleratedthedemandforrefinementstothecostingsystem?

A）Thedecliningdemandforcustomizedproductshasledmanagerstodecreasethevarietyofproductsandservicestheircompaniesoffer.

B）Theuseofproductandprocesstechnologyhasledtoanincreaseinindirectcostsandadecreaseindirectcosts.

C）Theincreasedofautomatedprocesseshasledtotheincreaseindirectmanufacturingcostleadingtoadecreaseinbreakevenpoint.

D）Theincreasingcompetitioninproductmarketshasledtoanincreaseincontributionmarginresultinginadecreaseofbreakevenpoint.

Answer:

B

Diff:

3

Objective:

2

AACSB:

Analyticalthinking

4）Demandforrefinementstothecostingsystemhasaccelerateddueto________.

A）increaseindirectcosts

B）decreaseinproductdiversity

C）decreaseinindirectcosts

D）competitioninproductmarkets

Answer:

D

Diff:

1

Objective:

2

AACSB:

Analyticalthinking

5）CollinInc.produceshospitalequipmentandthesetuprequirementsvaryfromproducttoproduct.CollinproducesitsproductsbasedoncustomerordersandusesABCcosting.Inoneofitsindirectcostpools,setupcostsanddistributioncostsarepooledtogether.Costsinthispoolareallocatedusingnumberofcustomerordersfortheeasinessofcostingoperations.Basedontheinformationprovided,whichofthefollowingargumentsisvalid?

A）Collinhasclearlyfailedtoidentifyasmanydirectcostsasiseconomicallyfeasible.

B）Allcostsinahomogeneouscostpoolhavethesameorasimilarcause-and-effectrelationshipwiththesinglecostdriverthatisusedasthecost-allocationbaseforCollin.

C）Collinhasunnecessarilywastedresourcesbyclassifyingsetupanddistributioncostsastheycouldhavebeenconsideredasdirectcosts.

D）Collinhasfailedtousethecorrectcostdriverasthecost-allocationbaseforsetupcosts.

Answer:

D

Diff:

1

Objective:

2

AACSB:

Applicationofknowledge

6）Whenrefiningacostingsystem,acompanyshouldclassifyasmanycostsaspossibleasindirectcosts,therebyminimizingtheextenttowhichcostshavetobetracedratherthanallocated.

Answer:

FALSE

Explanation:

Whenrefiningacostingsystem,acompanyshouldclassifyasmanycostsaspossibleasdirectcosts,therebyminimizingtheextenttowhichcostshavetobetracedratherthanallocated.

Diff:

2

Objective:

2

AACSB:

Analyticalthinking

7）Arefinedcostingsystemprovidesbettermeasurementofthecostsofindirectresourcesusedbydifferentcostobjects,nomatterhowdifferentlyvariouscostobjectsuseindirectresources.

Answer:

TRUE

Diff:

1

Objective:

2

AACSB:

Analyticalthinking

8）Indirectlaboranddistributioncostswouldmostlikelybeinthesameactivity-costpool.

Answer:

FALSE

Explanation:

Indirectlaboranddistributioncostswould not beinthesameactivity-costpoolbecausetheircostdriversareverydissimilar.Acostdriverofindirectlaborwouldincludedirectlaborhours,whileacostdriverofdistributioncostswouldinclude,forexample,cubicfeetofcargomoved.

Diff:

2

Objective:

2

AACSB:

Analyticalthinking

9）Directtracingofcostsreducestheamountofcostsclassifiedasindirectcosts.

Answer:

TRUE

Diff:

1

Objective:

2

AACSB:

Analyticalthinking

10）Acost-allocationbaseisanecessaryelementwhenusingastrategythatwillrefineacostingsystem.

Answer:

TRUE

Diff:

1

Objective:

2

AACSB:

Analyticalthinking

11）Whatarethefactorsthatarecausingmanycompaniestorefinetheircostingsystemstoobtainmoreaccuratemeasuresofthecostsoftheirproducts?

Answer:

Thefirstcauseisincreasingproductdiversity.Companiesareproducingmanymoreproductsthantheyusedto,placingstrainsonmoresimple,oldercostsystems.Asecondcauseistheoverallincreasedinindirectcostsandtherelativedeclineofdirectcosts.Theindirectnatureofthesecostsrequiresallocation,andanyinaccuraciesinallocationofthesecosts