Question: Topic: Activity-Based Management LO: 6 10. _____________________ is defined as the identification and selection of activities to maximize the value of the activities while minimizing
Topic: Activity-Based Management
LO: 6
10. _____________________ is defined as the identification and selection of activities to maximize the value of the activities while minimizing their cost from the perspective of the final consumer.
Activity-based costing
Activity-based management
Strategic cost management
None of the above
Topic: Product Costing with Activity-Based Costing
LO: 2
3. Thomas, Inc. uses activity-based costing. The company produces two products, 001 and 002. Information relating to the two products is as follows:
|
| 001 | 002 |
| Units produced | 38,000 | 50,000 |
| Machine-hours | 15,000 | 17,000 |
| Direct labor-hours | 16,000 | 24,000 |
| Materials handling (number of moves) | 8,000 | 12,000 |
| Setups | 10,000 | 14,000 |
The following costs are reported:
| Materials handling | $320,000 |
| Labor-related overhead | 960,000 |
| Setups | 600,000 |
Setup costs assigned to 002 are:
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