Questions from Cost Accounting

Q: Describe four levels of a cost hierarchy.

Describe four levels of a cost hierarchy.

Q: Why is it important to classify costs into a cost hierarchy?

Why is it important to classify costs into a cost hierarchy?

Q: What are the key reasons for product cost differences between simple costing

What are the key reasons for product cost differences between simple costing systems and ABC systems?

Q: Department indirect-cost rates are never activity-cost rates.”

Department indirect-cost rates are never activity-cost rates.” Do you agree? Explain.

Q: What are the four elements of the budgeting cycle?

What are the four elements of the budgeting cycle?

Q: How can sensitivity analysis be used to increase the benefits of budgeting

How can sensitivity analysis be used to increase the benefits of budgeting?

Q: What steps should a management accountant take if established written policies provide

What steps should a management accountant take if established written policies provide insufficient guidance on how to handle an ethical conflict?

Q: Describe how nonoutput-based cost drivers can be incorporated into budgeting

Describe how nonoutput-based cost drivers can be incorporated into budgeting.

Q: Explain how the choice of the type of responsibility center (cost

Explain how the choice of the type of responsibility center (cost, revenue, profit, or investment) affects behavior.

Q: What are some additional considerations that arise when budgeting in multinational companies

What are some additional considerations that arise when budgeting in multinational companies?