ACCT 434 Week 1 Quiz Activity Based Costing

This archive file of ACCT 434 Week 1 Quiz Activity Based Costing shows the solutions to the following problems:

1. The average cost data are for In-Sync Fixtures Company’s (a retailer) only two product lines, Marblette and Italian Marble.
2. The allocation of indirect costs in an activity-based costing system
3. Evaluating customer reaction of the trade-off of giving up some features of a product for a lower price would best fit which category of management decisions under activity-based management?
4. A company produces three products; if one product is overcosted then
5. To set realistic selling prices
6. Different products consume different proportions of manufacturing overhead costs because of differences in all of the following EXCEPT
7. A well-designed, activity-based cost system helps managers make better decisions because information derived from an ABC analysis
8. Companies use ABC system information to
9. For service organizations that bill customers at a predetermined average rate, activity-based cost systems can help to
10. Danielle Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $180,000. The budgeted number of nozzles to be inserted is 60,000. What is the budgeted indirect cost allocation rate for this activity?