6. Behavioural issues may be important in implementing an ABC system. Which of the following are some of the methods employed to minimise adverse outcomes?

i. Use a top down approach.

ii. Use a bottom up approach.

iii. Ensure all employees have a sense of ownership in the system.

A.

ii and iii

B.

i and iii

C.

iii

D.

i and ii

8. Volume-based measures may be used to apply overhead when:

A.

production runs are of various sizes but each run has a constant setup time.

B.

purchasing costs are related to the number of purchase orders not the number of items bought.

C.

material handling costs are driven by the number of materials issued to production, and components are used differentially by different products.

D.

production runs are of various sizes and overhead costs are directly proportional to the size of the run.

9. A medical practice bulk billing for patient services does not usually cost specific services because:

i. it does not control service-product mix.

ii. it cannot control costs.

iii. it does not determine prices.

A.

i and ii

B.

i, ii and iii

C.

ii and iii

D.

i and iii

10. Traditional product costing systems result in inaccurate product costs when:

A.

product diversity increases.

B.

the proportion of direct labour and raw material increases.

C.

direct labour increases.

D.

the proportion of direct labour and raw material increases AND product diversity increases.