Question

QUESTION 1

Activity in the business process model is defined as repetitive action performed in the fulfillment of a business function.

True

False

QUESTION 2

All of the following are Levels of Cost classification except for....?

	A.	Price level
	B.	Unit level
	C.	Batch level
	D.	Facility level

QUESTION 3

In Activity-based Costing, costs are collected in activity cost ________?

	A.	Pools
	B.	Buckets
	C.	Pitchers
	D.	Cans

  

QUESTION 4

A process is a series of activities that, when performed together, can satisfy a specific objective. All listed below are such objectives except for...?

	A.	Production
	B.	Selling
	C.	Labor
	D.	Administration

QUESTION 5

Implementing Activity-based Costing causes an increase in cost for high-volume, standard products.

True

False

Answer 1

1. TRUE

activities are elements in a business processwhich indicates the logical flow of information, each activities performs different functions within the process

2. A- PRICE LEVEL

cost hierarchy is the classification system thatassists in the allocation of cost, the levels of cost are as follows

• unit level (product unit)
• batch level ( no of batches)
• product level(activities of specific product/product line)
• facility level(cost to maintain a facility)

3. A-POOLS

activity based costing is the cost pool(aggregate of all costs) which in turn gives cost driver rate

4. C-LABOR

process is a series of actions which are performing inorder to achieve a specific objective, in the above giver things labor is an excemption

5. FALSE

through activity based costing, the indirect costs which are likely to incur can be avoided so that the total cost will decrease