3 quick questions

1. Which of the following costs would be most fairly allocated using a volume-based cost driver?

A. Indirect labor costs

B. Inventory holding costs

C. Property taxes

D. Set up costs for product batches

2. All of the following are downstream costs except

A. advertising costs

B. patent filing legal costs

C. distribution costs

D. warehousing costs

3. The benefits sacrificed when one alternative is chosen over another are referred to as

A. Avoidable costs

B. Sacrificial costs

C. beneficial costs

D. Opportunity costs