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26.
What is the normal effect on the numbers of cost pools and
allocation bases when an activity-based cost (ABC) system
replaces a traditional cost system?
27.
In an activity-based costing system, what should be used to
assign a department's manufacturing overhead costs to products
produced in varying lot sizes?
28.
Gram Co. develops computer programs to meet customers'
special requirements. How should Gram categorize payments to
employees who develop these programs?
29.
Where one part of an organization provides an essential
business process where previously it had been provided by
multiple parts of that same organization, this is called
30.
Which of the following items often provides a significant risk
with off-shore operations?
31.
A manufacturing company has several product lines.
Traditionally, it has allocated manufacturing overhead costs
between product lines based on total machine hours for each
product line. Under a new activity-based costing system, which of
the following overhead costs would be most likely to have a new
cost driver assigned to it?
32.
Nile Co.'s cost allocation and product costing procedures
follow activity-based costing principles. Activities have been
identified and classified as being either value-adding or nonvalue-
adding as to each product. Which of the following activities, used
in Nile's production process, is nonvalue-adding?
33.
Which of the following items is a process management
approach that involves radical change?
34.
In an income statement prepared as an internal report using
the direct (variable) costing method, fixed selling and
administrative expenses would
35.
The absorption costing method includes in work in process
and finished goods inventories:
36.
In an income statement prepared as an internal report using
the direct (variable) costing method, fixed selling and
administrative expenses would