1. Flavorful Manufacturing sells a number of goods whose selling price is heavily influenced by cost. A recent study of product no 519 revealed a traditionally derived total cost of $1,019, a selling price of $1,850 based on that figure, and a newly computed activity based total cost of $1,215. Which of the following statements is true?
   1. All other things being equal, the company should consider a drip in its sales price
   2. The company may have been extremely competitive in the marketplace from a price perspective
   3. Product no 519 could be labeled as being over costed by the first traditional costing procedures
   4. If product no 519 is under costed by traditional accounting procedures, then all of the companys other products must be over costed as well
2. Generally speaking, the activity-based cost figure is less accurate than the traditionally derived cost figure?
   1. Ture
   2. False
3. A hospital administrator is in the process of implementing an activity-based costing system, which of the following tasks would not be part of the process
   1. None of the answers is correct
   2. Assignment of cost to service provided
   3. Calculation of pool rates
   4. Identification of cost pools
   5. Identification of cost drivers
4. Successful adoptions of activity-based costing typical occur when companies rely heavily on:
   1. Manufacturing personal
   2. Finance personal
   3. Accounting personnel
   4. Multidisciplinary project teams
5. Generally speaking, companies prefer doing business with customer who:
   1. Often change their orders
   2. Request normal delivery times
   3. Require special packing and handling
   4. Order small quantities
   5. Need specialized engineering design changes
6. Activity based costing systems:
   1. Often reveal products that were under or over costed by traditional costing systems
   2. Use a single volume-based cost driver
   3. Assign overhead to products based on the products relative usage of direct labor
   4. Typically use fewer cost drivers than more traditional costing systems
   5. Have a tendency to distort product costs.