Question 1.36

The traditional approach to applying overhead costs to a product or service is to use a(n)

a. actual overhead rate.

b. activity-based overhead rate.

c. departmental overhead rate.

d. single-plantwide overhead rate.

1 point

Question 1.37

Which of the following is true of activity-based costing?

a. It is also called single-plantwide overhead costing.

b. It is helpful when companies manufacture one product.

c. It categorizes all indirect costs by activity.

d. The total overhead costs accumulate in one cost pool.

1 point

Question 1.38

Which of the following is related to performing in the management process?

a. Comparing budgets and actual departmental costs

b. Preparing process cost reports

c. Preparing internal management reports

d. Selecting the cost systems

1 point

Question 1.39

From the four selections below, identify which are necessary to develop the value chain of a product or service.

1. Processes 3. Nonvalue-adding activities

2. Departments 4. Value-adding activities

a. 1 and 3

b. 2 and 4

c. 1 and 4

d. 1 and 2

1 point

Question 1.40

Which of the following statements is true?

a. A company's value chain is not part of its supply chain.

b. A manufacturer's supply chain typically includes research and development and customer service.

c. A company's supply chain includes the value chains of its suppliers.

d. Your supplier's suppliers are part of your value chain.