Multiple Choice Questions

16. Which terms would make the following sentence true? Manufacturing companies that benefit
the most from activity-based costing are those where overhead costs are a _________
percentage of total product cost and where there is ___________ diversity among the various
products that they produce.

A) low, little

B) low, considerable

C) high, little

D) high, considerable

Ans:  D

17. Would factory security and assembly activities be best classified at an appliance manufacturing
plant as unit-level, batch-level, product-level, or organization-sustaining?

Security Assembly
A) Product Unit
B) Batch Batch
C) Organization Unit
D) Organization Product

Ans:  C
18. Which of the following would be an acceptable measure of activity for a material handling
activity cost pool?

Number of Weight of
material moves material moved
A) Yes Yes
B) No Yes
C) Yes No
D) No No

Ans:  A