D) ...actual indirect-cost rates times the actual quantities of cost-allocation bases. ANSWER: C 4. Assume you buy a car for $30,000 that you can sell after a useful time of life of five years for $5,000. Which of the following statements is FALSE? A) Under the straight-line depreciation, the annual depreciation amount is $5,000. B) The remaining book value after the second year is higher under straight-line depreciation than under the declining-balance depreciation. C) The annual depreciation rate under straight-line depreciation reaches 50% at its maximum. D) The annual depreciation rate under the declining-balance depreciation equals 35%. 5. Which of the following statements is FALSE? A) Activity-based costing is well suited for a start-up that produces one type of FFP 2 masks. B) Job costing systems are used for a unit or multiple units of a distinct product or service. C) Activity-based costing aims at reducing the use of broad averaging for assigning costs to cost objects. D) Process costing systems are used for masses of identical units of a product or service