11.Activity-Based Costing (ABC) is particularly useful to refine cost estimates when: a) Costs are mostly variable b) Costs are mostly fixed c) Direct costs are a large portion of total costs d) Indirect costs are a large portion of total costs 12. The primary users of management accounting information are: a) Shareholders b) Creditors c) Managers d) Employees 13. Correctly allocating support department costs to operating departments a) Improves the estimate of the resources consumed by operating departments b) Is an activity that is too costly given its benefits c) Is a typical example of activity-based costing d) Is mostly beneficial when support departments costs are small 14. Managers should consider refining a costing system when a) Jobs are neither undercosted nor overcosted by simpler costing systems b) The benefits of refining the costing system exceed its costs c) Preparing financial statements d) None of the above 15.A well-structured budgeting process a) Communicates corporate goals to employees, divisions, and managers and help their coordination towards a clearly defined goal b) Cannot promote learning in organizations, because budgets only look at the future c) Is typically detrimental to employees' morale because budgets set strict targets d) Contains forecasts with a time horizon of one quarter, at most 16.Suppose that company XYZ produces two products: A and B. If the new costing system at company XYZ reveals that product B was undercosted by its previous costing system, then managers at XYZ can conclude that a) The new costing system is an improvement over the previous costing system b) The previous costing system was a job costing system c) Product A was overcosted by the previous costing system d) The previous system traced too many direct costs to products A and B