Which statement is NOT generally true of activity-based costing?

1. ABC recognizes batch and product level costs.
2. ABC is more costly to implement and operate than traditional methods.
3. ABC uses more sophisticated cost drivers than traditional methods.
4. ABC allocates less service costs to product than traditional methods.

The most difficult issues in managerial accounting most often deal with:

1. The definition of "cost".
2. Cost allocation.
3. Taxes and regulatory compliance.
4. Employee behavior.

In general, managerial accounting places greater emphasis on ____ than does financial accounting.

1. Uniformity.
2. Precision.
3. Timeliness.
4. Objectivity.

Zero-based budgeting was designed as an alternative to:

1. Incremental budgeting.
2. Flexible budgeting.
3. Rolling budgets
4. Annual budgets

Factory supervision is what level of activity?

1. Unit.
2. Batch.
3. Product.
4. Facility.

In some organizations, cost center managers have been known to achieve favorable budget variances by cutting labor and other operating costs to the point where services are not being performed in an adequate and timely fashion. This problem can best be reduced by:

1. Avoiding the use of cost variances in evaluations.
2. Evaluating cost centers on the basis of ROI/ROA rather than cost variances.
3. Using effectiveness measures as well as cost measures in evaluation.
4. Avoiding the use of performance evaluations in compensation decisions.

Which of the following would be most appropriate for measuring the performance of a profit center?

1. Budget variances.
2. Return on sales.
3. Return on investment.
4. Econcomic value added.

Transfer pricing at variable cost tends to result in:

1. Under-consumption by the purchasing division.
2. Inadequate profit allowed to the transferring division.
3. Both of the above.
4. None of the above.