ACC650 Managerial Accounting: Week 3 Quiz
ACC650 Managerial Accounting: Week 3 Quiz
ACC650 Managerial Accounting: Week 3 Quiz
•Which of the following cost drivers would best be associated with the activity of physician time in a medical clinic?
•Number of new patient visits.
•Number of continuing patient visits.
•Physician minutes with a patient.
•Number of line items on the clinic’s bill.
•The number of accreditations held by the clinic.
• Magnolia Industries combines all manufacturing overhead into a single cost pool and allocates this overhead to products by using machine hours. Activity-based costing would likely show that with Magnolia’s current procedures that:
•all of the company’s products are undercosted.
•the company’s high-volume products are undercosted.
•all of the company’s products are overcosted.
•the company’s high-volume products are overcosted.
•the company’s low-volume products are overcosted.
•When determining customer profitability, activity-based costing can be used to analyze:
•orders processed.
•sales visits.
•special packaging and handling.
•billing and collections.
•All of the answers are correct.
•Baxter customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 10,000 calls and incurred costs of $312,000. Of these calls, 3,800 were for the company’s wholesale operation; the remainder was for the retail division. Costs allocated to the retail division are:
•$0.
•$31,200.
•$118,560.
•$193,440.
•$203,000.
•Which of the following is not a broad, cost classification category typically used in activity-based costing?
•Unit-level.
•Batch-level.
•Product-sustaining level.
•Facility-level.
•Management-level.
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