1. Which one of the following cast drivers would best be associated with the activity of physician time in a medical clinic?

1. The number of accreditations held by the clinic.
2. Physician minutes with a patient
3. Number of new patients visits
4. Number of continuing patient visits

1. 2. Magnolia Industries combines all manufacturing overhead into a single cost pool and allocates this overhead to products by using machine hours. Activity based costing would likely show that with Magnolias current procedures that:
   1. All of the companys products are over costed
   2. All of the companys products are under costed
   3. The companys high-volume products are under costed the companys high-volume products are overs costed
   4. The companys low volume products are over costed
2. When determining customer profitability, activity-based costing can be used to analyze
   1. All answers are correct
   2. Special packaging and handling
   3. Sales visits
   4. Orders processed
   5. Billing and collections
3. Baxter customer service dept follows up on a customer complaint by telephone inquiry. During a recent period, the dept initiated 10,000 calls and incurred costs of 312,000. Of these calls 3,800 were for the companys wholesale operation; the remainder was the retail division. Costs allocated to the retail division are:
   1. 203,000
   2. 31,200
   3. 193,440
   4. 118,560
   5. 0
4. Which of the following is not a broad, cost classification category typically used in a activity based costing?
   1. Product sustaining level
   2. Batch level
   3. Unit level
   4. Management level
   5. Facility level
5. The following tasks are associated with an activity-based costing system
   1. Assignment of cost to products
   2. Calculation of pool rates
   3. Identification of cost drivers
   4. Identification of cost pools
6. Which of the following choices correctly expresses the proper order of the preceding tasks?
   1. 4,2,1,3
   2. 4,3,2,1
   3. 1,2,3,4
   4. 2,4,1,3
   5. 3,4,2,1,