Complete Solution Manual
Horngren’s Cost ACCounting 17tH
Edition Questions & Answers with
rationales (Chapter 1-24)
Which of the following is most likely to make the implementation of
ABC/ABM slow and difficult - ANS-A lack of involvement by or
support from upper management
Activity-...
Which of the following is most likely to make the implementation of
ABC/ABM slow and difficult - ANS-A lack of involvement by or
support from upper management
Activity-based costing and generally accepted accounting
principles differ in that ABC - ANS-does not define product costs in
the same manner as GAAP.
Which of the following organizations would be most likely to use a
job-order costing system - ANS-the loan department of a bank
When job-order costing is used, the primary focal point of cost
accumulation is the - ANS-job
In a job-order costing system, - ANS-overhead is typically assigned
to jobs on the basis of some cost driver
What is the best cost accumulation procedure to use when many
batches, each differing as to product specifications, are produced -
ANS-job-order
Which of the following could not be used in job-order costing - ANS-
an average cost per unit for all jobs
, Which of the following costing systems allows management to
quickly recognize materials, labor, and overhead variances and take
measures to correct them?
Actual Cost System Normal Cost System - ANS-neither
Which of the following costing methods of valuation are acceptable
in a job-order costing system?
Actual MaterialCost
StandardMaterialCost
ActualLaborCost
PredeterminedOverheadCost - ANS-yes to all
When a company is labor-intensive, the cost driver that is probably
least significant would be - ANS-Machine Hours
An activity driver is used for which of the following reasons:
measure demands, measure resources consumed - ANS-yes to
both
The term cost driver refers to - ANS-any activity that causes costs to
be incurred.
Cost allocation bases in activity-based costing should be - ANS-
cost drivers
Costs that are common to many different activities within an
organization are known as ____ costs. - ANS-organizational-level
In activity-based costing, cost reduction efforts are directed at
specific - ANS-cost drivers
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