1) If products are different, then for costing purposes: A) an ABC costing system will yield more accurate cost numbers B) a simple costing system should be used C) a single indirect-cost rate should be used D) none of the above 2) Activity based costing system differs from traditional costing systems in the treatment of A) direct labor costs B) direct material costs C) prime costs D) indirect costs 3) Design costs are an example of: A) unit-level costs B) batch-level costs C) product-sustaining costs D) facility-sustaining costs 4) Product-cost cross-subsidization A) exists when one overcosted product results in more than one other product being overcosted B) means that if a company undercosts more than one of its products, it will overcost more than one of its other products C) means that if a company undercosts one of its products, it will overcost at least one of its other products D) exists only when one overcosted product results in all other products being overcosted 20 marks each 5) Al-Ain Co, produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $80,000. The budgeted number of nozzles to be inserted is 40,000. What is the budgeted indirect cost allocation rate for this activity? A) $0.50 B) $1.00 C) $1.50 D) None of the above