1. Which of the following is/are a benefit of normal costing?

a.	Normal costing enable companies to smooth out, or normalize, seasonal production fluctuations.
b.	Under normal costing, a firm can quickly calculate the cost of items manufactured.
c.	Under normal costing, a firm uses a predetermined overhead rate in applying overhead to each unit as the firm produces it throughout the year, rather than wait for the actual overhead rate to be determined at the end of the year.
d.	All of the answers are correct.

2. Which of the following represents an example of an organization that would use continuous flow processing methods?

a.	a chemical manufacturer.
b.	a custom home builder.
c.	a hospital.
d.	a custom jeweler.

3. What is the first step in the activity analysis process used to implement Activity Based Management?

a.	Chart, from start to finish, the activities used to complete the product or service
b.	Classify activities as value-added or non-value-added
c.	Eliminate non-value-added activities
d.	Continuously improve and reevaluate the efficiency of value-added activities or replace them with more efficient activities