21. A cost objective is the product, service, or department that will receive the allocated cost.(True or False)

22. Activity-based management aims at improving the efficiency and effectiveness of business processes.(True or False)

23. If managers are not charged for centrally administered services, what may managers likely do?

A. Seek outside suppliers

B. Limit their frivolous use of these services

C. Consider the services as free

D. Evaluate and consider lower-cost alternatives for the services

24. Which of the following is a grouping of individual costs whose total is allocated using one allocation base?

A. Cost objective

B. Cost pool

C. Direct cost

D. Cost driver

25. In a make-or-buy decision, direct materials and direct labor are usually incremental costs.(True or False)

26. The qualitative aspects of a decision must receive the same careful attention as the quantitative aspects.(True or False)