Which of the following statements refers to management accounting information?

Select one:

a. There are no regulations governing the reports

b. The reports are audited so they can be used in confidence by potential investors

c. It primarily measures and records business transactions

d. The reports are generally delayed and historical

Which one of the following is a variable cost for an insurance company?

Select one:

a. property taxes

b. amortization of office equipment

c. sales commissions

d. rent

Costs incurred at which of the following activity levels should NOT be allocated to products for decision-making purposes?

Select one:

a. Organization-sustaining activities.

b. Batch-level activities.

c. Product-level activities.

d. Unit-level activities.

Arranging for a shipment of a number of different products to a customer is an example of an activity at which of the following levels?

Select one:

a. Batch-level activity.

b. Unit-level activity.

c. Customer-level activity.

d. Organization-sustaining activity.

Which of the following is NOT a limitation of activity-based costing?

Select one:

a. More accurate product costs may result in increasing the selling prices of some products.

b. Maintaining an activity-based costing system is more costly than maintaining a traditional direct labour-based costing system.

c. In practice, most managers insist on fully allocating all costs to products, customers, and other costing objects in an activity-based costing system. This results in overstated costs.

d. Changing from a traditional direct labour-based costing system to an activity-based costing system changes product margins and other key performance indicators used by managers. Such changes are often resisted by managers.

Paul Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:

Activity Cost Pool Est. Cost Product A Product B Total

Activity 1 $22,000 400 100 500

Activity 2 16,240 380 200 580

Activity 3 14,600 500 250 750

The activity rate under the activity-based costing system for Activity 3 is closest to which of the following?

Select one:

a. $70.45.

b. $28.87.

c. $19.47.

d. $58.40.