ACC 227 ACC227 Module 3 Check Your Understanding Answers (AAU Online)

ACC 227 ACC227 Module 3 Check Your Understanding Answers (AAU Online)

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1.Activity-based costing is usually more accurate than unit-based costing for the assignment of overhead when there is/are:

2.The first three steps in implementing an activity-based costing system include: 

3.The major difference between traditional product costing and activity-based costing relates to the assignment of which type of cost?

4.Under activity-based costing, activities that take place in order to support a batch or production run, regardless of the size of the batch, are called: 

5.If activity-based costing is used, security would be classified as a: 

6.Prozer Company allocates one type of overhead cost on the basis of number of machine setups.  The number of machine setups is an example of a(n): 

7.Beta Company has decided to allocate its manufacturing overhead cost using activity-based costing.  Manufacturing overhead will be allocated based on batch-level and product line manufacturing as follows.  Using activity-based costing, manufacturing overhead for Product 1 is: 

8.Beta Company has decided to allocate its manufacturing overhead cost using activity-based costing.  Manufacturing overhead will be allocated based on batch-level and product line manufacturing as follows.  Using activity-based costing, manufacturing overhead for Product 2 is: 

9.Two characteristics of a good management accounting measure is that it: 

10.What are the advantages of an activity-based costing system?


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