Questions from Cost Accounting

Q: What type of organization is most likely to benefit from using activity

What type of organization is most likely to benefit from using activity-based costing for product costing? Why?

Q: In what ways is implementing an activity-based costing system in

In what ways is implementing an activity-based costing system in a manufacturing firm’s personnel department the same as implementing it in the plant? In what ways is it different?

Q: “Activity-based costing does a better job of allocating both

“Activity-based costing does a better job of allocating both direct and indirect cost than traditional methods do.” Is this statement true, false, or uncertain? Explain.

Q: The more important individual unit costs are used for decisions, the

The more important individual unit costs are used for decisions, the more likely it is that process costing will be preferred to job costing. Do you agree?

Q: “Activity-based costing could not be applied in a business

“Activity-based costing could not be applied in a business school.” Do you agree? Explain.

Q: Jim, the vice president of marketing, says the company should

Jim, the vice president of marketing, says the company should not adopt activity-based costing because it will result in the costs of some of the products going up but the market will not allow for ra...

Q: “We all know that cost allocation can distort decision making.

“We all know that cost allocation can distort decision making. We should stop doing this and just report direct costs.” Do you agree? Explain.

Q: Select an administrative function commonly found in a fi rm. Examples

Select an administrative function commonly found in a fi rm. Examples include personnel, accounts payable, purchasing, and so on. Outline an activity-based costing system for the function, including m...

Q: A manager tells you that her company’s cost accounting system divides overhead

A manager tells you that her company’s cost accounting system divides overhead into two pools: (1) Inspect material and (2) Assemble product. The inspect material pool is allocated on the basis of dir...

Q: Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B

Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and Department T produces the tennis rackets. Munoz currently uses plantwide allocation...