16. In the calculation of net income in absorption costing versus variable costing, a. The difference is due solely to the treatment of fixed manufacturing overhead b. The difference can be calculated as the change in fixed manufacturing overhead allocated to inventory c. Variable selling costs are completely expensed in both methods d. All of the above e. None of the above 17. In ABC, a cost pool can be effectively defined as a. The amount of time required to perform an activity b. The number of times an activity occurs c. Any activity measure that includes allocation processes d. A group of costs that have the same cost driver e. None of the above 18. An avoidable cost a. Is a cost that has already been incurred b. Is a cost that can be eliminated by choosing one alternative over another c. Is a benefit that will be sacrificed by choosing one alternative over another d. Is a future cost that does not differ between alternatives e. None of the above 19. One of the reasons we identify relevant costs is that a. Mingling relevant and irrelevant costs may distract attention from critical information b. The ratio of relevant to irrelevant costs is a measure of the quality of information c. Some irrelevant costs may vary depending on the decision to be made d. All of the above e. None of the above 20. When a company is involved in more than one activity in the entire value chain, it is a. Vertically integrated b. A full supply chain c. Horizontally integrated d. Monopolistic e. None of the above