1. Current trends in manufacturing include less direct labor and more overhead. A) True B) False 2. Activity-based costing allocates overhead to multiple cost pools and assigns the cost pools to products using cost drivers. A) True B) False 3. ABC usually results in less appropriate management decisions. A) True B) False 4. ABC is generally more costly to implement than traditional costing. A) True B) False 5. ABC is particularly useful when overhead costs are an insignificant portion of total costs. A) True B) False 6. A variable cost remains constant per unit at various levels of activity. A) True B) False 7. The break-even point is where total sales equal total variable costs. A) True B) False 8. The margin of safety is the difference between sales at breakeven and sales at a determined activity level. A) True B) False 1. Current trends in manufacturing include less direct labor and more overhead. A) True B) False 2. Activity-based costing allocates overhead to multiple cost pools and assigns the cost pools to products using cost drivers. A) True B) False 3. ABC usually results in less appropriate management decisions. A) True B) False 4. ABC is generally more costly to implement than traditional costing. A) True B) False 5. ABC is particularly useful when overhead costs are an insignificant portion of total costs. A) True B) False 6. A variable cost remains constant per unit at various levels of activity. A) True B) False 7. The break-even point is where total sales equal total variable costs. A) True B) False 8. The margin of safety is the difference between sales at breakeven and sales at a determined activity level. A) True B) False