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The process of using activity-based costs to help reduce or eliminate non-value

ID: 2468917 • Letter: T

Question

The process of using activity-based costs to help reduce or eliminate non-value added activities is called:

a)

Activity-based management.

b)

Activity-based benchmarking.

c)

Activity-based elimination.

d)

Activity-based costing.

Which of the following is a component of activity-based management, but is not a component of activity-based costing?

a)

Analyze activities.

b)

Identify activities.

c)

Determine cost per unit of activity.

d)

Identify activity measures.

Which of the following is not a characteristic of just-in-time manufacturing systems?

a)

Production output described as "supply push" manufacturing.

b)

Highly skilled work force.

c)

Close relationships with suppliers.

d)

Reduced inventory levels.

Which of the following is not considered an element of total cycle time?

a)

Inspection time.

b)

Design and development time.

c)

Storage and waiting time.

d)

Processing time.

Of total cycle time, value-added activities occur only during:

a)

Storage and waiting time.

b)

Design and development time.

c)

Inspection time.

d)

Processing time.

A companies total cycle time is 40 hours. Of this time, 30 hours represent non-value-added activities. The company's manufacturing efficiency ratio (expressed as a percentage) is:

a)

75%

b)

30%

c)

25%

d)

10%

Which of the following is not considered a cost component of achieving quality?

a)

Activity-based costs.

b)

Appraisal costs.

c)

External failure costs.

d)

Prevention costs.

a)

Activity-based management.

b)

Activity-based benchmarking.

c)

Activity-based elimination.

d)

Activity-based costing.

Explanation / Answer

Hi Dear Student!

Answers would be as follows:-

1

A, Its Activity Based Management which manage activities by using data collected by activity based costing.

2

A, In ABC we don't analyse activities. But in ABM we do Analyse.

3

A, It is not a element of JIT management.

4

C, Storage & Waiting Time is not considered as a part of Total Cycle Time.

5

D, Processing Time

6 C
7 A

Pleasure Teaching you!