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Which of the following would be the least likely cost driver for an activity such as the usage of factory supplies? Machine hours Number of
Which of the following would be the least likely cost driver for an activity such as the usage of factory supplies? Machine hours Number of engineering hours Direct labor hours Number of units produced Which of the following statements is true regarding cross-subsidies? They occur when factory workers are trained to work on many different machines. They occur when high-volume products are assigned more than their fair share of overhead costs. They occur when high-volume products have more direct material and direct labor costs than overhead costs. They occur when more than one cost driver can be determined for a particular overhead cost item. Which of the following is true regarding activity-based costing (ABC)? The benefits of using ABC always outweigh its limitations. The lower the proportion of overhead costs as compared to direct materials and direct labor costs, the more likely a company will benefit by using ABC. Companies with a high-proportion of non-unit-level costs should rarely use ABCD High measurement costs associated with ABC may deter some companies from us use. Which of the following accounting system outputs is not needed for cost-volume-profit analysis? Sales price per unit Variable costs per unit Total fixed costs Fixed cost per unit Assuming a company has net income, with the sale of each additional unit net income will increase by contribution margin ratio contribution margin per unit sales price per unit fixed cost per unit The represents the amount of each additional sale dollar that contributes towards the payment costs and, ultimately, net profit. contribution margin ratio contribution margin per unit break-even point variable cost per unit
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