Which ratio measures the proportion of an activity consumed by a product?

The consumption ratio measures the proportion of each activity consumed by a product.

What is the term for products having different consumption ratios for different overhead activities?

Product diversity means that products consume overhead activities in systematically different proportions.

What are assigned using direct tracing and resource drivers?

dictionary. – are assigned using direct tracing and resource drivers. costs. an activity dictionary lists the activities in an organization along with some critical activity attributes.

What type of analysis is concerned with identifying the root causes of activity costs?

Knowing the root causes of activity costs is the key to improvement and innovation. Once a manager understands why costs are being incurred, then efforts can be taken to improve cost efficiency. Driver analysis is a part of process value analysis—along with activity analysis and performance measurement.

What are activity ratios examples?

Types of Activity Ratios

• Total Assets Turnover Ratio.
• Fixed Assets Turnover Ratio.
• Current Assets Turnover Ratio.
• Working Capital Turnover Ratio. Stock Turnover ratio. Debtor Turnover ratio. Creditors Turnover ratio.

What are examples of profitability ratios?

Some common examples of profitability ratios are the various measures of profit margin, return on assets (ROA), and return on equity (ROE). Others include return on invested capital (ROIC) and return on capital employed (ROCE).

What is an activity-based approach to designing a costing system?

An activity-based approach-refines a costing system by focusing on individual activities (events, tasks, or units of work with a specified purpose) as the fundamental cost objects. It uses the cost of these activities as the basis for assigning costs to other cost objects such as products or services.

Are factors that measure the consumption of activities by products and other cost objects and can be classified as either unit-level or non unit-level?

Activity Drivers: Factors that measure the consumption of activities by products and other cost objects and can be classified as either unit-level or nonunit level.

What is direct tracing and driver tracing?

(1) Direct costs are costs that can be traced easily and accurately to a cost object. (2) Indirect costs are costs that cannot be traced easily and accurately to a cost object. b. Driver tracing is the use of drivers to assign costs to cost objects.

Are materials that are traceable to the goods or services being produced?

Indirect labor The cost of labor that cannot, or will not for practical reasons, be traced to the goods being produced or the services being provided. Indirect materials Materials used in making a product that cannot, or will not for practical reasons, be traced directly to particular products.

Which of the following is an example of a value added activity?

Explanation for correct option: As processing transforms raw materials into finished products that directly increase their value, it is value-added.

Which of the following items is an example of the management activity referred to as planning?

Which of the following is an example of the management activity referred to as planning? Controlling. The primary objective of managerial accounting is: To provide management with information useful for planning and control of operations.