11. LO 6.3 Which is not a task typically associated with ABC systems? A. calculating the overhead application rate for each cost pool B. applying a single cost rate C. identifying a cost driver D. more correctly allocating overhead costs 12. LO 6.4 Which statement is correct? A. Activity-based cost systems are less costly than traditional cost systems. B. Activity-based cost systems are easier to implement than traditional cost systems. C. Activity-based cost systems are more accurate than traditional cost systems. D. Activity-based cost systems provide the same data as traditional cost systems. 13. LO 6.4 Activity-based costing systems: A. use a single predetermined overhead rate based on machine hours instead of on direct labor B. frequently increase the overhead allocation to at least one product while decreasing the overhead allocation to at least one other product C. limit the number of cost pools D. always result in an increase of at least one product's selling price 14. LO 6.4 Activity-based costing is preferable in a system: A. when multiple products have similar product volumes and costs B. with a large direct labor cost as a percentage of the total product cost C. with multiple, diverse products D. where management needs to support an increase in sales price 15. LO 6.5 Absorption costing is also referred to as: A. direct costing B. marginal costing C. full costing D. variable costing 16. LO 6.5 Under variable costing, a unit of product includes which costs? A. direct material, direct labor, and manufacturing overhead B. direct material, direct labor, and variable manufacturing overhead C. direct material, direct labor, and fixed manufacturing overhead D. direct material, direct labor, and all variable manufacturing overhead 17. LO 6.5 Under absorption costing, a unit of product includes which costs? A. direct material, direct labor, and manufacturing overhead B. direct material, direct labor, and variable manufacturing overhead C. direct material, direct labor, and fixed manufacturing overhead D. direct material, direct labor, and all variable manufacturing overhead 18. LO 6.5 A downside to absorption costing is: A. not including fixed manufacturing overhead in the cost of the product B. that it is not really useful for managerial decisions C. that it is not allowable under GAAP D. that it is not well designed for cost-volume-profit analysis