21) The income statements for both a merchandiser and manufacturer would include which of the following?

A) Operating expenses

B) Direct labor incurred

C) Direct materials used

D) Cost of goods manufactured

37) The reservations department that has self-contained sales operations at a car rental chain may be classified as a(n)

A) cost center.

B) investment center.

C) profit center.

D) revenue center.

38) The benefits of adopting activity-based costing (ABC/ABM) are higher for companies in competitive markets because

A) accounting/information system expertise is inexpensive to develop.

B) ABC/ABM can pinpoint opportunities for cost savings.

C) accurate product cost information is not as relevant for price setting.

D) companies in competitive markets have low indirect costs.