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0, A cost driver A, is the same as a fixed cost. B. is an activity that causes total costs to change. C. is the
0, A cost driver A, is the same as a fixed cost. B. is an activity that causes total costs to change. C. is the same as margin of safety. D. is a method of calculating mixed costs. 11. An activity that is performed to benefit the organization A. batch-level activity. B. customer-level activity C. facility level activity. D. unit-level activity. 12. A large company that uses activity based costing woule A. Use a volume-based cost driver for each activity B. Form a cost pool for each activity performed by the C. Use a single cost pool D. Group activities together to simplify the number of 13. External failure costs are costs that A. are incurred to prevent quality problems from occ B. are incurred to identify defective products before C. result from defects that are caught before the pro D. occur when a defective product makes its way in mon fixed costs that are allo argin? ets that are unrelated to one another, so that investing in one pr fect the choice about investing in the other alternatives, are Independent projects. B. Preference projects. Mutually exclusive projects D. Screening projects 30. Summit Corp is considering the purchase of a new piece of equipm equipment would result in an annual increase in net income after ta will have an initial cost of $400,000 and have a 7 year life. If the s is estimated to be $75,000, what is the accounting rate of return? A. 14.28% B. 25.00% C. 42.1 1 % D. 147.37% 31. The method that compares the present value of a project's future investment is Accounting rate of return B. Payback period C. Net present value D. Internal rate of return 32. A positive net present value indicates that a project will A. generate a return in excess of the firm's cost of capital. 0, A cost driver A, is the same as a fixed cost. B. is an activity that causes total costs to change. C. is the same as margin of safety. D. is a method of calculating mixed costs. 11. An activity that is performed to benefit the organization A. batch-level activity. B. customer-level activity C. facility level activity. D. unit-level activity. 12. A large company that uses activity based costing woule A. Use a volume-based cost driver for each activity B. Form a cost pool for each activity performed by the C. Use a single cost pool D. Group activities together to simplify the number of 13. External failure costs are costs that A. are incurred to prevent quality problems from occ B. are incurred to identify defective products before C. result from defects that are caught before the pro D. occur when a defective product makes its way in mon fixed costs that are allo argin? ets that are unrelated to one another, so that investing in one pr fect the choice about investing in the other alternatives, are Independent projects. B. Preference projects. Mutually exclusive projects D. Screening projects 30. Summit Corp is considering the purchase of a new piece of equipm equipment would result in an annual increase in net income after ta will have an initial cost of $400,000 and have a 7 year life. If the s is estimated to be $75,000, what is the accounting rate of return? A. 14.28% B. 25.00% C. 42.1 1 % D. 147.37% 31. The method that compares the present value of a project's future investment is Accounting rate of return B. Payback period C. Net present value D. Internal rate of return 32. A positive net present value indicates that a project will A. generate a return in excess of the firm's cost of capital
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