Questions from Managerial Accounting


Q: Explain a key difference in the interpretation of the ABC data in

Explain a key difference in the interpretation of the ABC data in Exhibit 5–7 (Patio Grill Company) and Exhibit 5–16 (Delaware Medical Center). Exhibit 5-7: Exhibi...

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Q: Explain the concept of two-dimensional ABC. Support your explanation

Explain the concept of two-dimensional ABC. Support your explanation with a diagram.

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Q: What is meant by the term activity analysis? Give three criteria

What is meant by the term activity analysis? Give three criteria for determining whether an activity adds value.

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Q: Distinguish between an activity’s trigger and its root cause. Give an

Distinguish between an activity’s trigger and its root cause. Give an example of each.

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Q: Explain the concept of a pool rate in activity-based costing

Explain the concept of a pool rate in activity-based costing. (Refer to Exhibit 5–6 .) Exhibit 5-6:

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Q: What is the role of activity dictionary in an ABC project?

What is the role of activity dictionary in an ABC project?

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Q: How could the administration at Delaware Medical Center’s Primary Care Unit use

How could the administration at Delaware Medical Center’s Primary Care Unit use the activity-based costing information developed by the ABC project team?

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Q: Explain the relationship between customer profitability analysis and activity-based costing

Explain the relationship between customer profitability analysis and activity-based costing.

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Q: Why are product costs also called inventoriable costs?

Why are product costs also called inventoriable costs?

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Q: What is a customer profitability profile?

What is a customer profitability profile?

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