In ABC systems, activities are often separated into a hierarchy of categories. REQUIRED A. In your own
Question:
In ABC systems, activities are often separated into a hierarchy of categories.
REQUIRED
A. In your own words, explain what is meant by a cost hierarchy in ABC.
B. Explain why uncertainty is possible in classifying costs within the cost hierarchy.
C. Explain how categorizing costs into a hierarchy helps accountants determine how costs behave.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (10 reviews)
A A cost hierarchy in ABC divides activities into six levels unit batch product customer facility an...View the full answer
Answered By
Jehal Shah
I believe everyone should try to be strong at logic and have good reading habit. Because If you possess these two skills, no matter what difficult situation is, you will definitely find a perfect solution out of it. While logical ability gives you to understand complex problems and concepts quite easily, reading habit gives you an open mind and holistic approach to see much bigger picture.
So guys, I always try to explain any concept keeping these two points in my mind. So that you will never forget any more importantly get bored.
Last but not the least, I am finance enthusiast. Big fan of Warren buffet for long term focus investing approach. On the same side derivatives is the segment I possess expertise.
If you have any finacne related doubt, do reach me out.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott
Question Posted:
Students also viewed these Managerial Accounting questions
-
In ABC systems, activities are often separated into a hierarchy of six categories. REQUIRED In your own words, define and give examples of the following types of activities and costs in an ABC system...
-
Explain what is meant by surface integrity. Why should we be interested in it?
-
Explain what is meant by this statement: One companys account receivable is another companys account payable.
-
The most popular Java GUI containers include: . a. JFrame Form, JDialog Form, JPanel Form b. JPanel Form, JPlugins Form, JCanvas Form c. JPanel Form, JMaven Form, PHP Form d. JFrame Form, JField...
-
A typical engagement ring has 0.77 cm3 of gold. What mass of gold is present?
-
Youve just joined the investment banking firm of Dewey, Cheatum, and Howe. Theyve offered you two different salary arrangements. You can have $90,000 per year for the next two years, or you can have...
-
The compression ratio of an I.C. engine is defined as (a) Stroke volume (Vs)/Clearance volume (Vc) (b) V c / V s (c) V c + V s / V c (d) V c + V s / Vs
-
Jaime Baldwin owns and operates Love Transport Co. During the past year, Jaime incurred the following costs related to an 18-wheel truck: 1. Changed engine oil. 2. Installed a wind deflector on top...
-
An empty 150g glass bottle is at room temperature, 22 Celcius, if 270g of boiling water is poured into the bottle, what is the temperature of the bottle and the water when they reach thermal...
-
a. To simplify the analysis, assume for now that there is virtually no turnaround time between flights so the next flight can begin as soon as the current flight ends. (If an immediate next flight is...
-
Should ABC be used in service industries? Why or why not?
-
Jefferson County owns and operates an animal shelter that performs three services: housing and finding homes for stray and unwanted animals, providing health care and neutering services for the...
-
Let 1 , 2 , 3 be, respectively, the means of three normal distributions with a common but unknown variance 2 . In order to test, at the = 5% significance level, the hypothesis H 0 : 1 = 2 = 3...
-
What options are available to reduce the critical path on a project? What considerations would you need to make in choosing an appropriate option?
-
How can the project portfolio matrix help an organization to support overall strategic integration?
-
Explain the concept of activity-based costing. What are the steps involved in this process?
-
Consider the common problems with project cost estimation and recall a project with which you have been involved. Which of these common problems did you encounter most often? Why?
-
Key in project scheduling for a search of the Web. Hundreds of thousands of hits are generated from such a search. Examine a cross section of the hits. What are some of the common themes found on...
-
Which of the following investment alternatives includes an arbitrage opportunity? Bond A: The yield for a 3% annual coupon 10-year bond is 2.5% in New York City. The same bond sells for $104.376 per...
-
d) For die casting processes: 1. What are the most common metals processed using die casting and discuss why other metals are not commonly die casted? 2. Which die casting machines usually have a...
-
Why does the East Coast of the United States experience wider seasonal variation than the West Coast, even though both areas have oceans along their margins?
-
Suppose that Media Cable is a single-price monopolist in the market for cable in Anywhere, Iowa. Media has five potential customers: Morgan, Larry, Clyda, Janet, and Tom. Each of these customers are...
-
Display Labs Inc recently began production of a new product, flat panel displays, which required the investment of $1,800,000 in assets. The costs of producing and selling 9000 units of flat panel...
-
Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units. Southeastern estimates its...
-
A nursing team is having a routine meeting. One of the nurses, Stephen, is at the end of a 12-hour shift, and another nurse, Tanya, is just beginning hers. Tanya is a senior nurse in the unit with...
-
Assume that you are the leadership team of a convenience store chain that has more than 300 outlets. The company is facing an inventory shrinkage problem, and store managers report that the main...
-
1 . An employee at Amy's candles has noticed that some order quantities in the two reports presented are different although the order numbers are the same. We normally refer to such data as dirty....
Study smarter with the SolutionInn App