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Accounting questions and answers. Assume a company that uses activity-based costing (ABC) has only two products – A and B. The company does not have any organization-sustaining activities or unused capacity costs. The company’s total manufacturing overhead cost of $56,000 has been allocated to the three activities shown below: Setups Machining.activities that relate to specific products that must be carried out regardless of how many units are produced and sold or bathes run second-stage allocation the process by which activity rates are used to apply costs to products and customers in activity-based costingStudy with Quizlet and memorize flashcards containing terms like Activity-based costing uses numerous (1) cost pools. (Enter only one per blank.), Select all that apply Costs that …

A systematic approach of comparing the performance of some aspect of an organization's operations to that of outstanding external companies or to other divisions within the same organization.Unit-level activities are: proportional to the number of units produced 20. Place the steps for implementing ABC in order. 1) define activities, activity cost pools, and activity measure 2) assign overhead costs to activity cost pools 3) calculate activity rate 4) assign overhead costs to cost objects 5) prepare management reports 21.Organization-sustaining activities are those actions taken to maintain the operations of a business. For example, a company must pay property taxes, utilities, and …Study with Quizlet and memorize flashcards containing terms like An ABC system usually _____ a traditional cost system., Some manufacturing costs may be excluded from product costs when using _____ costing., Costs that can be easily traced to individual products include _____. and more.Managerial Accounting Practice all cards What is an activity in activity-based costing? Any event that causes the consumption of overhead resources. What are the five levels of …

A costing method based on activities that is designed to provide managers with cost information for strategic and other decisions that potentially affect capacity and therefore fixed as well as variable costs. A management approach that focuses on managing activities as a way of eliminating waste and reducing delays and defects. Activities that ... Organization-sustaining activities. These activities are carried out regardless of which products are produced, how many batches are run, or how many units are made. This … ….

Reader Q&A - also see RECOMMENDED ARTICLES & FAQs. Organization-sustaining activities is another term for -level activities.. Possible cause: Not clear organization-sustaining activities is another term for -level activities..

Organization-sustaining overhead costs should be allocated to products just like unit-level and product-level activities. False Activity-based costing uses a number of activity cost pools, each of which may have a different allocation base.Multiple Choice. $9,000. $3,000. $6,000. $12,000. 2.Assume a company that uses activity-based costing (ABC) has only two products - A and B. The company does not have any organization-sustaining activities or unused capacity costs. The company's total manufacturing overhead cost of $56,000 has been allocated to the three activities shown below:

Activity based costing refers to the system of costing in cost management where the overhead costs are allocated based on the activities in the process of production. Answer and Explanation: 1 Become a Study.com member to unlock this answer! True / False Questions. 1. Unit-level activities are performed each time a unit is produced. 2. Organization-sustaining activities are activities of the general organization that support specific products. 3. Costs classified as batch-level costs should depend on the number of batches processed rather than on the number of units produced, the ...

activate replacement gizmo watch Organization Sustaining Activities Definition Organizational sustaining activities are those activities that are carried out regardless of which customers are served, which products are produced, how many batches are run, or how many units are made. isotopes of nitrogen 15ku jayhawks next game You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Question: Would the following activities at a manufacturer of canned soup be best classified as unit-level, batch-level, product-level, or organization-sustaining activities? Researching new recipes Shipping orders to grocery stores A) Unit Unit B)Unit-level, batch-level, product-level, customer-level, and organization sustaining activities are the five levels of activity for activity-based costing. · unit-level activities are performed each time a unit is produced. · batch-level activities are performed each time a batch is handled and processed. · product-level activities relate to ... waitlisted class 5 steps in implementing activity based costing. 1) define activities, cost pools, and activity measures. 2) assign overhead costs to activity cost pools. 3) calculate activity rates. 4) assign overhead costs to cost objects using activity rates and … exempt from withholding taxmedicinal chemistry universityjalen coleman The first step in activity-based costing involves identifying activities and classifying them according to the cost hierarchy. Cost hierarchy is a framework that classifies activities based the ease at which they are traceable to a product. The levels are (a) unit level, (b) batch level, (c) product level, and (d) facility level. craigslist cars and trucks for sale Activity-based costing is a way of allocating overhead costs based on “activities.” This differentiates it from job-order costing, which allocates costs by a specific cost driver like machine hours. An activity is an event, task or unit of work with a specific purpose, whether it be designing products, setting up machines, operating ...In activity, products are assigned all of the overhead costs. Activity cost treats ORGANIZATION-SUSTAINING costs as period expenses rather than product costs. activity uses more cost pools. Study Chapter 7 Activity-Based Costing: A Tool to Aid Decision Making flashcards. Create flashcards for FREE and quiz yourself with an interactive flipper. printable individual alphabet letter alphabet clipartwhat is public service announcementjackson mcdonald's Study with Quizlet and memorize flashcards containing terms like A predetermined overhead rate in an activity-based costing system is called _______. A. an activity B. an activity rate C. an activity cost pool D. activity-based management, An activity that must be done for each item produced is a(n) _______ level activity. A. facility B. batch C. product D. unit, Setting up machines, billing ...