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Committed" and "Sunk" costs are Multiple Choice 02:28:46 Recoverable in trade The result of prior bad decisions Not relevant for decision-making Generally small in amount. Generally not fixed. Under variable costing, fixed manufacturing overhead costs would be classified as: Multiple Choice 02:28:38 Inventory costs Period costs. Product costs. Selling costs. The Institute of Management Accountants' Statement of Ethical Professional Practice for management accountants includes the elements of: 02:28:31 Multiple Choice Competence, confidentiality, integrity, and credibility Competence, accuracy, integrity, and independence Competence, confidentiality, independence, and objectivity. Competence, confidentiality, integrity, and relevance. The controller for Alabama Cooking Oil Co. established the following overhead cost pools and cost drivers: 25 Budgeted Overhead $186,000 # of setups Estimated Cost Driver Level Overhead Cost Pool Cost Driver Machine setups Material handling Quality control Other overhead cost 120 setups 7,800 barrels 124,800 # of barrels 316,200 #otinspections 1,020 inspections 172,500 # of machine hrs 11,500 machine hrs 02:28:01 An order of 800 barrels of cooking oil used # of setups # of barrels # of inspections # of machine hours 14 800 1,100 Required (1) What is the overhead rate per machine hour if the number of machine hours is used as a single cost driver under traditional costing system? (Round your intermediate calculation to the nearest cent and final answer to the nearest whole dollar.) (2) Using volume-based costing, how much overhead is assigned to the order based on machine hours as a single cost driver? (3) Using ABC costing, how much total overhead is assigned to the order? Volume-based overhead rates may cause undesirable strategic effects such as 26 Multiple Choice 02:27:44 All of these answer choices are correct. Unprofitable cross-subsidization of products. Incorrect decisions Ineffective management of operations for process improvement. Which of the following is not true regarding activity-based costing (ABC) systems? 7 Multiple Choice 02:27:36 ABC can provide more accurate product costs. ABC is likely to be more time-consuming than volume-based systems ABC is likely to have more overhead rates than volume-based systems ABC is used in both manufacturing and non-manufacturing companies ABC identifies more costs as indirect costs than do traditional volume-based systems

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