Webfacility-level Primary Benefit of ABC more accurate product costing, ABC leads to enhance control over overhead costs, abc leads to better management decisions How many stages does Traditional costing system have? One The reason behind ABC cost allocation is Product consume activities and activities consume resources

MidTerm StudyGuide Chapter 3 Flashcards Quizlet

Webfacility-level activity Classify as either a unit-level, batch-level, product-level, or facility-level activity. A security guard patrols the company grounds after normal working hours. batch-level activity Classify as either a unit-level, batch … WebFacility-level Direct labor Unit-level Shipment of an order to a customer Batch-level or Unit-level or Facility-level Product line manager salary Product-level Machine setup costs that are incurred whenever a new production order is started Batch-level Patent for new product Product-level Factory utilities Facility-level Direct materials Unit-level dr ferguson lubbock ortho

Managerial Accounting - Chapter 4 Flashcards Quizlet

WebFacility level activities of an organization would not include machine set up Soil Company sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% and fixed expenses do not change, then contribution margin per unit increases. Sales mix refers to WebActivity-based costing involves the following four steps 1. Identify and classify the activities involved in the manufacture of specific products and allocate overhead to cost pools 2. Identify the cost driver 3. compute the activity-based overhead rate 4. assign overhead costs to products ABC (activity-based costing) has three primary benefits: Webfacility-level activity. a. unit-level activity. Product costs can be distorted if a unit-based activity driver is used and a. nonunit-based overhead costs are a significant proportion of total overhead. b. the consumption ratios differ between unit-based and nonunit-based input categories. c. both a and b. d. neither a nor b. c. both a and b. dr ferguson putnam ct