Part 1- Which of the following statements is true regarding current manufacturing companies?

A. Most production labor time is spent running production equipment rather than actually physically working on a product.

B. Production processes are highly automated and more complex.

C. Companies produce a wide variety of products in individual facilities.

D. Manufacturing Overhead constitutes a significant portion of per-unit costs.

E. All of the above

Part 2

Which of the following statements regarding Activity-Based Costing is correct?

Select one:

A. Overhead costs are allocated based on actual costs incurred in a period.

B. Direct costs (materials and labor) are accumulated in cost pools and assigned based on driver usage.

C. Increases in information technology have made Activity-Based Costing less useful.

D. Cost drivers and cost objects are essential parts of Activity-Based Costing.

E. All of the above are correct.

Part 3-

Using a company-wide overhead rate rather than Activity-Based Costing might lead to which of the following problems?

Select one:

A. Overpricing products

B. Under-pricing products

C. Discontinuing profitable operations

D. Continuing unprofitable operations

E. All of the above