A.) Which of the following would be classified as a service department?

a. the maternity department in a hospital

b. the employee-training department of a computer manufacturer

c. an assembly department in a factory d. the jewelry department of a department store

B.)Which of the following is not generally believed to be a benefit of an activity-based costing system? a. Managers are able to exercise less control over functional areas due to increased complexi- ties associated with cost accumulation and estimation. b. Product and services costs are generally more accurately estimated in an activity-based costing system. c. Managers efforts are more focused on continuous improvement.

d. The budgeting process is enhanced with more detailed and accurate activity data.

C.) Which of the following types of companies would be most likely to benefit from activity-based costing? a. companies with a low potential for cost distortions

b. companies that have a large proportion of unit-level costs

c. companies that have a relatively high proportion of overhead compared to direct materials and direct labor

d. none of the above