ACCT 5110 questions and answers with a grade of A+ and verified solutions

Which of the following statements is INCORRECT concerning traditional ABC? A. It assigns only the cost of used capacity to products B. All of these statements are correct C. It is expensive to build and maintain D. It provides better results than a system which uses volume-based drivers E. It is difficult to modify the system after it is in place - ANSA. It assigns only the cost of used capacity to products Which of the following statements is CORRECT? The capacity cost rate in TDABC: A. ALL of the statements are correct B. uses a denominator that reflects the total possible minutes available C. is easily re-calculated as costs and capacity change D. will vary for the different tasks performed E. None of the statements are correct - ANSC. is easily re-calculated as costs and capacity change Using Exhibit 3 on page 10 of the "Innovation of TDABC" article, 51,400 represents: A. All of these are necessary B. the number of minutes available C. the cost of the unused capacity D. the number of minutes used E. the number of minutes not used - ANSE. the number of minutes not used The cost of UNUSED capacity: A. Is assigned to the products in Time-Driven ABC B. Is computed in traditional ABC systems C. None of these D. All of these E. Should be included in the product cost for better decision-making - ANSC. None of these Time-driven ABC : A. None of these are correct B. requires time-consuming surveys as in traditional ABC C. Is simpler but much less powerful than traditional ABC D. Is more expensive to maintain that traditional ABC E. All of these are correct - ANSA. None of these are correct Adding granularity to the costing system: A. None of these statements are correct B. becomes a necessity for reliable costing as complexity increases C. is accomplished by adding more activities (cost pools) when using traditional ABC and Time-Driven ABC D. refers to using duration rather than transaction cost drivers E. All statements are correct - ANSB. becomes a necessity for reliable costing as complexity increases