Question

Part A:

Which of the following statements are true regarding current manufacturing companies?

Select one:

A. Production processes were simpler than before.

B. Most companies produced only a limited variation of products in one facility.

C. Materials and wages constituted the largest portions of the per-unit costs.

D. Production is labor intensive.

E. None of the above.

Part B:

Which of the following statements are true regarding Activity-Based Costing?

Select one:

A. Non-manufacturing costs are not important to include when calculating the cost of each product.

B. Costs are allocated based on a pre-determined overhead rate for each cost pool.

C. Transitioning from traditional costing methods to Activity-Based Costing is a relatively simple process that most companies complete quickly.

D. Activity-Based Costing results in a different amount of total overhead applied than under traditional costing methods.

E. None of the above

Part C:

Which of the following statements are true regarding Activity-Based Costing?

Select one:

A. Non-manufacturing costs are not important to include when calculating the cost of each product.

B. Costs are allocated based on a pre-determined overhead rate for each cost pool.

C. Transitioning from traditional costing methods to Activity-Based Costing is a relatively simple process that most companies complete quickly.

D. Activity-Based Costing results in a different amount of total overhead applied than under traditional costing methods.

E. None of the above

Answer 1