Question:1

For a company that custom manufactures TVs, at the end of the month there are various amounts of TVs on the shop floor in various stages of manufacture. These TVs would be termed

a) Direct Materials Inventory

b) Inventory

c) Direct Materials

d) Work in Process Inventory

Question:2

Which of the following situations indicate ABC may be beneficial for improving

a) costing accuracy

b) Company provides only one service

c) Experienced production manager questions the costing accuracy of one of the four product lines produced by a company

d) Company currently uses a large number of homogeneous cost pools to assign indirect costs

e) Company uses "Normal" costing techniques.

Question:3

Product-Cost Cross-Subsidization

a) would lead to one product incorrectly absorbing another product's cost

b) would lead to one product being actually under-costed

c) would lead to one product being actually over-costed

d) all listed answers are correct.

Question:4

True or false: A company produces only one product - by definition, it does not have indirect costs

True

False.