5. A company manufactures bicycles and has several models of bicycles. Each model is classified as a product line. The YHZ model requires the use of a specialized machine, which is only used for that model. The company pays $ 5,000 per month to rent the machine. This cost is a: a. Unit-level cost b. Batch-level cost c. Product-sustaining-level cost d. Facility-level cost

6. The cost of inspecting the finished products: a. It can be "unit-level" or "batch-level", depending on how the inspection is performed. b. It is always "unit-level" c. It is always "batch-level" d. When ABC is used, there is no inspection cost.

7. Indicate which of the following statements is true:

Number 1: A unit-level cost driver, such as direct labor, machine hours, or throughput, will not be able to assign the costs of non-unit-level activities accurately.

Number 2: When the consumption ratios differ widely between activities, no single cost driver will accurately assign the resulting overhead costs.

a. Assertion Number 1 b. Assertion Number 2 c. Both statements are true d. Both assertions are false