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CA Final Activity-Based Costing and Management — practice questions — page 2

Explore 70 free Activity-Based Costing and Management questions in CA Final Cost and Management Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Activity-Based Costing and Management questions and exercises with answers

Showing questions 31–60 of 70.

A pleasant workplace may look non-value-adding in ABM. What does this show?Read the answer and worked solution →Porter calls cost drivers the what of an activity's cost?Read the answer and worked solution →Capacity utilization and plant layout are which driver type?Read the answer and worked solution →Scale of operations and use of technology are which driver type?Read the answer and worked solution →Which driver assigns a resource's cost to an activity pool?Read the answer and worked solution →Which driver measures the demand a cost object puts on activities?Read the answer and worked solution →Which driver suits raw-material handling overhead?Read the answer and worked solution →What typically drives inspection cost?Read the answer and worked solution →Which driver is likely for maintenance overhead?Read the answer and worked solution →Under-used capacity does what to cost per unit?Read the answer and worked solution →The Pareto rule says 20% of causes give what share of effects?Read the answer and worked solution →Who applied Pareto's idea to quality control in 1941?Read the answer and worked solution →Pareto found 80% of Italy's land held by what share of people?Read the answer and worked solution →Juran's later name for the key 20% of causes was what?Read the answer and worked solution →The Pareto chart is a key tool in which approach?Read the answer and worked solution →Inventory ABC-analysis in procurement rests on which principle?Read the answer and worked solution →In Pareto analysis, causes are arranged in what order?Read the answer and worked solution →A Pareto chart line is drawn at what cumulative level?Read the answer and worked solution →Which tool is used after Pareto analysis to find root causes?Read the answer and worked solution →How should the 80:20 ratio be viewed?Read the answer and worked solution →A weakness of Pareto analysis is that it may exclude what?Read the answer and worked solution →In project risk work, Pareto analysis helps focus on which risks?Read the answer and worked solution →Fixing the top 20% of reported bugs removed what share of crashes, per Microsoft?Read the answer and worked solution →A 1992 UN report gave the richest 20% what share of world income?Read the answer and worked solution →The 80:20 rule is linked to which distribution?Read the answer and worked solution →Customer profit equals customer revenue less which item?Read the answer and worked solution →What is hardest in measuring customer profitability?Read the answer and worked solution →Which method can help find the cost of serving each customer?Read the answer and worked solution →Which forward-looking measure complements historical customer profit?Read the answer and worked solution →Customer profit analysis may show some customers do what?Read the answer and worked solution →

Worked practice questions

A pleasant workplace may look non-value-adding in ABM. What does this show?

  1. ABM overstates revenue
  2. Staff cost is variable
  3. ABM ignores activities
  4. Some value is implicit
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Correct answer: D. Some value is implicit

Some activities carry value that does not show up as a financial addition to any product.

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Porter calls cost drivers the what of an activity's cost?

  1. Accounting outputs
  2. Random variations
  3. Pricing outcomes
  4. Structural determinants
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Correct answer: D. Structural determinants

Porter treats cost drivers as structural determinants, not just simple variables.

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Capacity utilization and plant layout are which driver type?

  1. Executional
  2. Activity
  3. Structural
  4. Resource
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Correct answer: A. Executional

Shank and Govindarajan class drivers arising from how activities run as executional.

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