1)

In perfect competition, additional sales will be profitable if ________.

A) the marginal cost is less than marginal revenue

B) sales price exceeds the variable product cost

C) total variable cost is less than sales price

D) the fixed cost equals the contribution margin

2)

When allocating indirect production costs to cost objects, which of the following is/are a cost-allocation base(s)?

A) some measure of input or output that determines the amount of cost to be allocated to a cost object

B) a measure used to assign indirect costs to cost objects

C) a measure used to assign direct costs to cost objects

D) A and B both

3)

When assigning indirect costs to a cost object, an ideal cost-allocation base measures ________.

A) the proportion of indirect costs to direct costs

B) the extent a particular cost is caused by a cost object

C) multiple cost drivers

D) the proportion of direct costs to indirect costs

4)

The essence of the just-in-time philosophy is to eliminate waste.

A) TRUE B) FALSE