Multiple Choice Questions
1. A unit-level driver is consumed by a product each and every time that
a. A batch of products is produced.
b. A unit is produced.
c. A purchase order is issued.
d. A customer complains. e. none of these.
2. Which of the following is a nonunit-level driver?
a. Direct labor hours
b. Machine hours
c. Direct materials
d. Setup hours
e. Assembly hours
Use the following information for Multiple-Choice Exercises 18-3 and 18-4:
Consider the information given on two products and their activity usage:

3. Refer to the information above. The consumption ratios for the setup activity for each product are
a. 0.167; 0.833.
b. 0.333; 0.667.
c. 0.500; 0.500.
d. 0.667; 0.333.
e. None of these.
4. Refer to the information above. Suppose that machine hours are used to assign all overhead costs to the two products. Select the best answer from the following:
a. Laser printers are overcosted, and inkjet printers are undercosted.
b. Laser printers and inkjet printers are accurately costed.
c. Laser printers are undercosted, and inkjet printers are overcosted.
d. Using inspection hours to assign overhead costs is the most accurate approach.
e. None of the above.
5. The first stage of ABC entails the assignment of
a. Resource costs to departments.
b. Activity costs to products or customers.
c. Resource costs to a plantwide pool.
d. Resource costs to distribution channels.
e. Resource costs to individual activities.
6. The second stage of ABC entails the assignment of
a. Activity costs to products or customers.
b. Resource costs to departments.
c. Resource costs to a plantwide pool.
d. Resource costs to individual activities.
e. Resource costs to distribution channels.
7. Interview questions are asked to determine
a. What activities are being performed.
b. Who performs the activities.
c. The relative amount of time spent on each activity by individual workers.
d. Possible activity drivers for assigning costs to products.
e. All of these.

Transcribed Image Text:

Laser Printer Inkjet Printer Units produced Setup hours Inspection hours Mochine hours 1,000 800 500 200 4,000 400 500 1,000