alleryStart learning →Customer profitability is a measure of which time view?
- Real-time only
- Probabilistic
- Historical
- Forward-looking
Show answer and solution
Correct answer: C. Historical
Like other profit measures it summarises what happened in a previous period.
CA Final Activity-Based Costing and Management — practice questions — page 3
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.
Practise Activity-Based Costing and Management with Quill →Activity-Based Costing and Management questions and exercises with answers
Showing questions 61–70 of 70.
Customer profitability is a measure of which time view?Read the answer and worked solution →Pyhrr's budgeting method begins each period from what base?Read the answer and worked solution →Who created zero-based budgeting at Texas Instruments?Read the answer and worked solution →A drawback of zero-based budgeting is that it demands what?Read the answer and worked solution →Which benefit is claimed for zero-based budgeting?Read the answer and worked solution →A setup pool costs Rs 60,000 for 120 setups. Product X needs 30 setups. Setup cost for X?Read the answer and worked solution →A machining pool costs Rs 2,40,000 over 8,000 machine hours. What is the rate per hour?Read the answer and worked solution →An inspection pool is Rs 90,000 for 300 inspections. A 1,500-unit product used 45. Cost per unit?Read the answer and worked solution →An order-handling pool is Rs 1,50,000 for 500 orders. Product P has 120 orders. Cost charged to P?Read the answer and worked solution →Five defect causes give 50, 30, 10, 6 and 4 cases. How many causes cover 80% of cases?Read the answer and worked solution →
Worked practice questions
Pyhrr's budgeting method begins each period from what base?
- Prior budget plus 5%
- Industry average
- Last year's actuals
- A zero funding base
Show answer and solution
Correct answer: D. A zero funding base
Every expense must be justified afresh, starting with no funding allocation.
Who created zero-based budgeting at Texas Instruments?
- Robert Kaplan
- Joseph Juran
- Michael Porter
- Peter Pyhrr
Show answer and solution
Correct answer: D. Peter Pyhrr
Peter Pyhrr, an accounting manager there, created the method.
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