6) An opportunity cost is: A) a cost that cannot be traced to a specific cost object B) an actual outlay of cash. C) the foregone benefit of the path not taken. D) the initial investment required to pursue an opportunity. 7) Which of the following is a requirement under the Sarbanes-Oxley Act? A) Management must conduct a review of the company's internal control system. B) Background checks must be performed on all employees. C) Management must issue a report that indicates whether the financial statements are free of error D) Financial statements must be audited by a Big Four accounting firm 8) Which of the following statements is true with regard to product costs versus general, administrative costs? selling and A) Product costs associated with units sold appear on the income statement as cost of goods so B) Product costs associated with unsold units appear on the income statement as general expenses. C) General, selling, and administrative costs appear on the balance sheet D) None of these is true. 9) All the costs assigned to an individual job are summarized on a: A) labor time ticket. C) materials requisition form. B) job cost sheet. D) cost driver sheet. 10) A predetermined overhead rate is calculated by dividing: A) estimated manufacturing overhead cost by actual total cost driver. B) actual manufacturing overhead cost by estimated total cost driver. C) estimated total cost driver by estimated manufacturing overhead cost D) estimated manufacturing overhead cost by estimated total cost driver. 11) Manufacturing overhead is applied to each job using which formula? A) Actual overhead rate x estimated value of the cost driver for the job B) Predetermined overhead rate x actual value of the cost driver for the job C) Predetermined overhead rate/actual value of the cost driver for the job D) Predetermined overhead rate x estimated value of the cost driver for the job