Purchase Solution

Activity Based Costing - cost drivers

Not what you're looking for?

Ask Custom Question

Because activity-based costing creates cost drivers for detailed-level indirect cost, CVP analysis using activity-based costs will tend to shift cost from fixed to variable classifications, resulting in?:
Lower breakeven sales.
Higher breakeven sales.
No change in breakeven sales.
A higher contribution margin per unit.
A lower contribution margin per unit.

Purchase this Solution
Solution Summary

The solution looks at activity based costing.

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
Recent Feedback
  • "Your explanation to the answers were very helpful."
  • "What does 1 and 0 means in the repair column?"
  • "Went through all of the formulas, excellent work! This really helped me!"
  • "try others as well please"
  • "Thank you, this helped a lot. I was not sure how to plug in those numbers to a formula. This was a great help. Now I have to figure out how to explain cost of capital is used in net present value analysis, and how cost of capital is used in net present value analysis. This stuff gets confusing."
Purchase this Solution
Free BrainMass Quizzes
Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Motivation

This tests some key elements of major motivation theories.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

View More Free Quizzes
Related BrainMass Solutions

  • Cost drivers and activity based costing

    What are some cost pools? Name two or three different cost drivers for each of these cost pools. DQ 1 What activity-based costing? What are some of the key elements of activity-based costing?

  • Activity Based Costing Allocation Rates

    134705 Activity Based Costing Allocation Rates 6- ABC (activity-based costing) uses activity allocation rates in product costing. How are activity cost drivers used in ABM (activity-based management)?

  • Activity Based Costing Allocation

    Volume based cost drivers are based on... the author explains why traditional costing systems use single cost drivers and explains the difference between volume based cost driver and activity based cost drivers.

  • Assign costs using Activity Based Costing

    Identify activity cost drivers. Compute overhead rates and assign overhead using ABC. Activity-Based Costing overhead costs of $89,500 were estimated. An analysis of estimated overhead costs reveals the following activities.

  • Activity-based costing vs traditional overhead allocation

    The solution compares the product cost using traditional costing and activity based costing

  • Activity based costing

    The solution explains how to assign the overhead costs and determine the product cost using activity based costing

  • Activity Based Costing and Overheads

    Compute the unit activity costs for each of the cost drivers listed. b. Assign the overhead costs to products A and B using activity-based costing. Please see the attachment in Excel.

  • Activity Based Costing

    Activity Cost Pools Audit Tax Expected Use of Cost Drivers Activity-Based Overhead Rate Cost Assigned Expected Use of Cost Drivers Activity-Based Overhead Rates Cost Assigned Employee training $ $ $ $ $ $ Typing & Secretarial

  • Activity-Based Costing.

    Determine the unit cost for each of the two products using activity-based costing (See attached file for full problem description) --- 4-26 Activity-based costs VG Company has identified the following cost pools and cost drivers: Cost

View More Related Solutions