Question

Does your company/organization employ an activity-based cost system (ABC), or something similar? Do you identify the...

Does your company/organization employ an activity-based cost system (ABC), or something similar? Do you identify the activities needed to produce your products or services, and then assign costs to them for pricing or other purposes? Have you identified cost pools, with a cost driver assigned to each cost pool? Cost pools could be departments within your organization or particular process or steps in the production of a good or service. Have you adjusted the cost pools or cost drivers recently? Do you use a combination of unit level, batch level, product level, and organization level cost drivers?

Homework Answers

Answer #1

Does your company/organization employ an activity-based cost system (ABC), or something similar?

Yes, our company shifted from traditional costing method to ABC costing few years ago owing to increased complications and wrong pricing structures of the various products we manufactured

Do you identify the activities needed to produce your products or services, and then assign costs to them for pricing or other purposes?

Yes, since our company manufactures many products, we first identify different activities and than accordingly assign costs

Have you identified cost pools, with a cost driver assigned to each cost pool? Cost pools could be departments within your organization or particular process or steps in the production of a good or service.

Yes. our cost pools are different steps in the production of a goods or services

Have you adjusted the cost pools or cost drivers recently? Do you use a combination of unit level, batch level, product level, and organization level cost drivers?

Yes

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
PA4-1 Assigning Costs Using Traditional System, ABC System [LO 4-1, 4-3, 4-4, 4-6] Hazelnut Corp. manufactures...
PA4-1 Assigning Costs Using Traditional System, ABC System [LO 4-1, 4-3, 4-4, 4-6] Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $160,188 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Activity Cost Pools Cost Driver Cost Assigned to Pool Quantity/Amount Consumed by Basic Quantity/Amount Consumed by Luxury Materials handling Number of moves $ 4,108 18...
Question 9 Flynn Industries has three activity cost pools and two products. It expects to produce...
Question 9 Flynn Industries has three activity cost pools and two products. It expects to produce 3,200 units of Product BC113 and 1,830 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Flynn accumulated the following data relative to those activity cost pools and cost drivers. Annual Overhead Data Expected Use of Cost Drivers per Product Activity Cost Pools Cost Drivers Estimated Overhead Expected Use of Cost Drivers per Activity Product BC113 Product...
Equally Accurate Reduced ABC System Silven Company has identified the following overhead activities, costs, and activity...
Equally Accurate Reduced ABC System Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $126,000 Number of setups 150 Ordering materials 18,000 Number of orders 900 Machining 126,000 Machine hours 10,500 Receiving 30,000 Receiving hours 1,250 Silven produces two models of cell phones with the following expected activity demands: Model X Model Y Units completed 5,000 10,000 Number of setups 100 50 Number...
2.Appleby Manufacturing uses an activity-based costing system. The company produces Model F and Model G. Information...
2.Appleby Manufacturing uses an activity-based costing system. The company produces Model F and Model G. Information relating to the two products is as follows : Model F Model G Units produced 24,000 30,000 Machine hours 7,500 8,500 Direct labor hours 8,000 12,000 Material handling (number of moves) 4,000 6,000 Setups 5,000 7,000 Purchase orders 30 40 Inspections 10,000 14,000 Product line variations 8 12 The following overhead costs are reported for the following activities of the production process: Material handling...
Urban Elite Cosmetics has used a traditional cost accounting system to apply quality-control costs uniformly to...
Urban Elite Cosmetics has used a traditional cost accounting system to apply quality-control costs uniformly to all products at a rate of 18 percent of direct-labor cost. Monthly direct-labor cost for Satin Sheen makeup is $111,000. In an attempt to more equitably distribute quality-control costs, management is considering activity-based costing. The monthly data shown in the following chart have been gathered for Satin Sheen makeup. Activity Cost Pool Cost Driver Pool Rates Quantity of Driver for Satin Sheen Incoming material...
Project Integration Management Questions Only A team member notifies you, after the fact, that she has...
Project Integration Management Questions Only A team member notifies you, after the fact, that she has added extra functionality to the project. There was no impact on the cost or schedule. What should be done as a result of this change? Make sure marketing is aware of the change. Implement change control processes to track the change. Inform the customer. Understand what functionality was added. You are having difficulty getting a project underway. You have not been able to get...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From the April 2004 Issue Save Share 8.95 In 1991, Progressive Insurance, an automobile insurer based in Mayfield Village, Ohio, had approximately $1.3 billion in sales. By 2002, that figure had grown to $9.5 billion. What fashionable strategies did Progressive employ to achieve sevenfold growth in just over a decade? Was it positioned in a high-growth industry? Hardly. Auto insurance is a mature, 100-year-old industry...
In narrative essay format, I want you to address a business/organization case study using multiple concepts...
In narrative essay format, I want you to address a business/organization case study using multiple concepts from class. The case question and case text begin on page 5 of this document. You need to demonstrate their best understanding of management and organizational behavior theory, and the application of those ideas to improve the understanding of various issues. You need to clearly identify at least 3 distinct, substantive issues. For each issue you need to 1), identify evidence from the case...
INTRO NewForm IT is a seven-year-old IT consulting company founded in 2012 that provides services to...
INTRO NewForm IT is a seven-year-old IT consulting company founded in 2012 that provides services to small businesses in their local and regional area. NewForm employs 83 people, 61 of whom are IT professionals/ consultants. NewForm is struggling financially; it has not met its revenue projections in the last five quarters. NewForm has suffered excessive leadership turnover in the past three years. The original founders sold NewForm in 2015; one of them, James Stanton, remained on as CHRO but sold...
INTRO NewForm IT is a seven-year-old IT consulting company founded in 2012 that provides services to...
INTRO NewForm IT is a seven-year-old IT consulting company founded in 2012 that provides services to small businesses in their local and regional area. NewForm employs 83 people, 61 of whom are IT professionals/ consultants. NewForm is struggling financially; it has not met its revenue projections in the last five quarters. NewForm has suffered excessive leadership turnover in the past three years. The original founders sold NewForm in 2015; one of them, James Stanton, remained on as CHRO but sold...