Question
1. An important difference between activity-based costing and traditional costing is that under activity-based costing, _____. a.activities are not considered in determining product cost b.a
1. An important difference between activity-based costing and traditional costing is that under activity-based costing, _____.
a.activities are not considered in determining product cost
b.a plantwide overhead rate is used
c.multiple overhead rates are calculated
d.unit costs are less accurate
2.
Activity-based customer costing:
a.has a single driver for all customers.
b.is not useful for companies with a JIT (just-in-time) structure.
c.is not useful for companies with only one product.
d.has customers as cost objects.
3.
Which of the following cost reduction techniques focuses on nonvalue-added activities as a measure to reduce costs?
a.Activity elimination
b.Activity reduction
c.Activity selection
d.Activity sharing
4.
Unit-level costs:
a.vary with the types of plant facilities.
b.vary with the number of product lines.
c.vary with the output volume.
d.vary with the number of batches produced.
5.
Carr Manufacturing makes a product that incurs prime costs of $310,000. Production uses 1,100 setup hours and 1,900 machine hours. Activity rates are $70 per setup hour and $40 per machine hour. Carr's total product cost is:
a.$153,000.
b.$76,000.
c.$463,000.
d.$310,000.
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