Which of the following would be less likely to be used to allocate factory overhead when activity-based costing is employed?

a. Setups

b. Inspections

c. Direct labor costs

d. Engineering changes

2)

An alternative approach for allocating factory overhead when there are diverse products and processes is

a. absorption costing.

b. variable costing.

c. activity-based costing.

d. All of these choices are correct.

3)

Differential analysis may be used for the common decisions of leasing or selling equipment and manufacturing or purchasing a needed part.

a. This statement is true only for manufacturing companies.

b. This statement is true.

c. This statement is false.

d. This statement is true only for service companies.