62.A method of assigning overhead costs to a product using a single overhead rate is:
A. Plantwide overhead rate method.
B. Cost pool overhead rate method.
C. Departmental overhead rate method.
D. Activity-based costing.
E. Overhead cost allocation method.
63.Which types of overhead allocation methods result in the use of more than one overhead rate during the same time period?
A. Plantwide overhead rate method and departmental overhead rate method.
B. Cost pool overhead rate method and plantwide overhead rate method.
C. Departmental overhead rate method and activity-based costing.
D. Activity-based costing and plantwide overhead rate method.
E. Departmental overhead rate method and cost pool overhead rate method.
64.Which of the following would not be considered a product cost?
A. Direct labor costs.
B. Factory supervisor's salary.
C. Factory line worker's salary.
D. Cost accountant's salary.
E. Manufacturing overhead costs.
65.Overhead costs:
A. Are directly related to production.
B. Can be traced to units of product in the same way that direct materials can.
C. Cannot be traced to units of product in the same way that direct labor can.
D. Are period costs.
E. Include only fixed costs.
66.The cost object of the plantwide overhead rate method is:
A. The unit of product.
B. The production departments of the company.
C. The production activities of the company.
D. Manufacturing cost pools.
E. the time period.
67.Which of the following statements is true with regard to the plantwide overhead rate method?
A. The rate is determined using volume-related measures.
B. It is logical to use this method when overhead costs are not closely tied to volume-related measures.
C. This method uses multiple overhead rates.
D. The rate is determined using measures that are not closely related to volume.
E. The method provides the most accurate means of allocating overhead costs.
68.The cost object(s) of the departmental overhead rate method is:
A. The unit of product.
B. The production departments of the company.
C. The production departments in the first stage and the unit of product in the second stage.
D. The unit of product in the first stage and the production departments in the second stage.
E. The production activities of the company.
69.Which of the following statements is true with regard to the departmental overhead rate method?
A. It is logical to use this method when overhead resources are consumed by various products in substantially the same way throughout multiple departments.
B. It is logical to use this method when overhead resources are consumed by various products in substantially different ways throughout multiple departments.
C. Each department has the same rate for the same activity pool.
D. It requires one overhead cost pool and one rate.
E. It is synonymous with activity-based costing.
70.The cost object(s) of the activity-based costing method is(are):
A. The unit of product.
B. The production departments of the company.
C. The production activities of the company.
D. The production activities in the first stage and the unit of product in the second stage.
E. The unit of product in the first stage and the production activities in the second stage.
71.From an ABC perspective, what causes costs to be incurred?
A. Financial transactions.
B. The volume of units produced.
C. Debits and credits.
D. Management decisions.
E. Activities.