4-6

QUESTION 4 In activity-based costing, cost reduction efforts are directed at specific processes cost drivers cost pools cost categories QUESTION 5 Classify each of the activities as either a unit-level, batch-level, product-level or organization-sustaining activity. Design new products A. Batch-level Perform periodic preventive maintenance on general-use equipment B. Organization-sustaining Use the general factory building C. Product-level - Issue purchase orders for a job QUESTION 6 Which of the following is NOT a true statement about budgets? They should be prepared infrequently O They are formal documents that quantify a company's plans They enhance communication and coordination O They provide a basis for evaluating performance