Multiple Choice
Activity-based costing systems should be adopted when ________.
A) indirect costs represent a small proportion of a product's total costs
B) direct costs represent a small proportion of a product's total costs
C) a company makes one simple product
D) a company has a simple manufacturing process
Correct Answer:
Verified
Correct Answer:
Verified
Q11: Companies try to maximize non-value-added costs.
Q12: Allocated costs are irrelevant for most decisions
Q15: In a merchandising company,_.<br>A)selling and administrative costs
Q17: Where a specific manufactured product is the
Q18: Cost allocation refers to an _.<br>A)actual tracing
Q19: A manufacturing firm typically has _ inventory
Q20: Yesterday Bank had the following activities,traceable costs,and
Q82: Value-added costs are not necessary for most
Q92: Period costs include selling and administrative expenses.
Q143: Traditional costing systems generally assign only production