1)whenever materials and conversion costs are added at different times or are not added proportionately, equivalent units of materials and equivalent units of conversion costs will differ.

True or False

2)when calculating the equivalent units under the weighted average cost flow assumption, there is usually a separate layer of beginning inventory, a layer both started and completed in the current period, and a third layer of ending inventory.

True or False

3)which of the following statement is incorrect about ABC system?

packaging

assembling

machine hours

customer service

4)which of the following statement is incorrect about ABC system?

cost drivers should bear some logical causal relationship to the costs in the pool

activity pool helps to simplify the system so that it is manageable

ABC is not allowed for financial reporting purposes under US GAAP

transitioning from traditional costing methods to activity-based costing is a relatively simple process that most companies complete quickly.

5)

Creative Canopies (CC) is a manufacturer of flexible canopies for athletic facilities. CC has contracts with 3 universities to install and maintain the canopies on their baseball field bleachers. After missing budget predictions this year, the CFO decided to use ABC costing principles to evaluate the profitability of their customers. The cost accounting team has put together the following estimates regarding specific cost activities related to the maintenance of the canopies: The universities are all out-of-state but relatively equidistant from the manufacturing plant, so per-trip travel costs are not considered to be significantly different. However, each university has different expectations regarding maintenance of the canopy, and CC has collected the following data for each customer: (Assume that each of the three customers produces gross profits of $10,000 ). Which customer is the least profitable? UCSD USF UCLA