ACC 406 Chapter 7: Chapter 7.docx

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rosedeer364

5 Mar 2012

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exhibit 7-1 on pg 299 shows abc hierarchy. Illustrating the failure of plantwide or departmental rates y ex. on pg 300-301. Problems with cost distortion y more on pg 301-302 y cornerstone 7-1 on pg 302. Illustrative example: service firm y answers to the set of key questions identified in pg 307 & exhibit 7-4. Assigning costs to products y example on pg 312-313. Activity-based customer costing and activity-based supplier costing y abc is used to accurately find the costs of suppliers & customers (ex. on pg 314) Activity-based customer costing y more on pg 314-315. Customer costing versus product costing y highlighted on pg 315 y cornerstone 7-5 on pg 316 shows how abc assigns costs to customers. Activity-based supplier costing y highlighted on pg 315. Supplier costing methodology y highlighted on pg 315 y cornerstone 7-6 shows how to use abc for supplier costing.

Related Questions

Astro Corporation, a furniture manufacture, uses anactivity-based costing system. It has identified the followingselected activities:

Setting up machines for a particular batch of production.

Inspecting wood prior to using it in production.

Packaging completed furniture in boxes for shipment.

Inspecting completed furniture for quality control.

Purchasing TV time to advertise a particular product.

Incurring property taxes on factory buildings.

Incurring paint cost for furniture produced.

Classify each activity as a unit-level, batch-level, productlevel, or facility âlevel activity.

Identify an appropriate cost driver (allocation base) for eachof the activities

sapphirepug697

How can the concept of batch-level activites be applied to anairline? More specifically, what are two examples of unit-levelactivies for JetBlue? What steps has JetBlue taken to manage theseunit-level activities more efficiently?

How can the concept of batch-level activities be appoied to anairline? What are two examples of batch-level activities forJetBlue? What steps has JetBlue taken to manage these batch-levelactivities more efficiently?

emeraldrat981

EXERCISE 7-12 Activity Measures [L07-1] Various activities at Ming Corporation, a manufacturing company, are listed below. Each activity has been classified as a unit-level, batch-level, product-level, or customer-level activity. Level of Activity Examples of Activity Measures Activity a. Direct labor workers assemble a product ..... b. Products are designed by engineers ..... c. Equipment is set up ............. d. Machines are used to shape and cut materials ... e. Monthly bills are sent out to regular customers ....... f. Materials are moved from the receiving dock to production lines ........ g. All completed units are inspected for defects ........ Unit Product Batch Unit Customer Batch Unit Required: Complete the table by providing an example of an activity measure for each activity.

ACC 406 Chapter 7: Chapter 7.docx

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