Multiple choice questions: 1. Which of the following isn't a characteristic of process costing? A) Product costs are accumulated by department B) Uniform products are created C) Custom orders are received from customers D) Commonly used in manufacturing environments 2. IKEA had 90,000 tables in beginning inventory in process as of May 1 (80% converted) and 20.000 tables in process as of May 31 (50% converted) in its assembly department. During the month. 140.000 tables were transferred out to packing from the Finishing department. The equivalent units to be used to calculate average conversion costs for May for the Assembly department using the Weighted Average method is: A) 66.000 tables B) 166,000 tables C) 132.000 tables 0) 150.000 tables 3. Misleading cost numbers are most likely the result of misallocating: A) direct material costs 3) direct manufacturing labor costs C) indirect costs D) All of these answers are correct. 4. Rening a cost system requires which of the following? A) classifying as many costs as indirect costs as is feasible B) choosing cost allocation bases that can be only subjectively measured C) identifying all the major activities that consume resources in the organization D) seeking a lesser level of detail 5). Which of the following statements about activitybased costing is NOT true? A) Activitybased costing is useful for allocating marketing and distribution costs as well as indirect manufacturing costs. B) Activitybased costing is more likely to result in major differences from traditional costing systems if the rm manufactures only one product rather than multiple products. C) Activitybased costing seeks to distinguish batchlevel. productsustaining. and facility sustaining costs. especially when they are not proportionate to one another. D) Activity-based costing differs from traditional costing systems in that products are not cross subsidized