15. Consider the following statements:

I. In some cases, a favorable variance can be worse than an unfavorable variance [Consider comments about McDonalds [see textbook page 513]

II. A standard is a benchmark for measuring performance. [see textbook page 497]

a. I is true; II is true

c. I is false; II is true

b. I is true; II is false

d. I is false; II is false

16. Consider the following statements:

I. In Activity Based Costing [ABC] Numerous overhead cost polls are used, each of which is allocated to products and other cost objects using its own unique measure of activity.

II. In an Activity Based Costing [ABC] system, Both Direct Manufacturing Costs and Direct Non-manufacturing costs would be considered Product Costs.

a. I is true; II is true

c. I is false; II is true

b. I is true; II is false

d. I is false; II is false