1. An _______________ is a bucket in which costs are accumulated that relate to a single activity measure in the ABC system.
   1. Activity Cost Pool
   2. Cost driver
   3. Cost planning
   4. All of the above
2. When batch-level and product-level costs are present, ABC will usually shift costs from high volume products, produced in __________ batches, to low volume products produced in ___________ batches.
   1. Medium, Small
   2. Large, Small
   3. Small, Large
   4. ABC, Traditional
3. ____________________is a 12-month budget that rolls forward one month as the current month is completed.
   1. Continuous budget
   2. Annual budget
   3. Operating budget
   4. Perpetual budget
4. Which of the following is called the mother of all budgets?
   1. Production budget
   2. Sales budget
   3. Cash collection budget
   4. Direct material budget
5. Which of the following is true for flexible budgets?
   1. May be prepared for any activity level in the relevant range.
   2. Show costs that should have been incurred at the actual level of activity, enabling apples to apples cost comparisons.
   3. Help managers control costs.
   4. Improve performance evaluation.
6. Glacier Peak Outfitters has the following direct material standard for the fiberfill in its mountain parka. As per standards 0.1 kg. of fiberfill per parka at $5.00 per kg. Last month 210 kgs of fiberfill were purchased and used to make 2,000 parkas. The material cost a total of $1,029. Price variance is __________.
   1. $31
   2. $21
   3. $50
   4. $800
7. Which of the following is NOT the reason of why companies dont use ABC costing for external reporting?
   1. External reports are less detailed than internal reports.
   2. It may be difficult to make changes to the companys accounting system.
   3. ABC does not conform to GAAP.
   4. Auditors may be suspect of the objective allocation process based on interviews with employees.
8. Hanson Inc. has the following material standard to manufacture one Zippy: 1.5 pounds per Zippy at $4.00 per pound. Last week, 2,800 pounds of material were purchased at a total cost of $10,920, and 1,700 pounds were used to make 1,000 Zippies. The quantity variance is _____________ unfavorable.
   1. $800
   2. $500
   3. $1800
   4. $1000
9. A TQM team at Narton Corp has recorded the following average times for production:

Wait 3.0 days Move 0.5 days

Inspection 0.4 days Queue 9.3 days

Process 0.2 days

What is the throughput time?

9. 1. 10.4 days
   2. 0.2 days
   3. 4.1 days
   4. 13.4 days
10. A _____________ is a cost that can be eliminated, in whole or in part, by choosing one alternative over another. Avoidable costs are relevant costs. Unavoidable costs are irrelevant costs.
    1. Avoidable cost
    2. Unavoidable cost
    3. Favorable cost
    4. Sunk cost