The number of children enrolled in the daycare center rather than the cost of meals served would be the more accurate basis to use for allocating the indirect costs associated with a factory's day-care center

True

False

QUESTION 12

All three terms variable cost, period cost, and indirect cost do not describe the amount paid for the sugar used to make chocolates.

True

False

13

The firm estimated the expected manufacturing overhead for the following year to be 3.5 million, when it actually was 2.9 million. This will lead to: Higher POHR, Overcharging of the customers, and a likely loss of returning customers

True

False

QUESTION 14

High-low method to find the cost formula uses fewer data points, which makes it less accurate than the regression method, to do the same.

True

False

QUESTION 15

Activity-based costing breaks down overhead costs by activities undertaken and not by departments.

True

False