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20. Sender, Inc. estimates parcel mailing costs using the data shown on the chart below. What is Sender ' s estimated cost for mailing 12,000 parcels?
21. When production levels are expected to increase within a relevant range, and a flexible budget is used, what effect would be anticipated with respect to each of the following costs?
22. Day Mail Order Co. applied the high-low method of cost estimation to customer order data for the first 4 months of 2005. What is the estimated variable order filling cost component per order?
23. When production levels are expected to decline within a relevant range, and a flexible budget is used, what effect would be anticipated with respect to each of the following?
24. In an activity-based costing system, cost reduction is accomplished by identifying and eliminating
25. Book Co. uses the activity-based costing approach for cost allocation and product costing purposes. Printing, cutting, and binding functions make up the manufacturing process. Machinery and equipment are arranged in operating cells that produce a complete product starting with raw materials. Which of the following are characteristic of Book ' s activity-based costing approach? I. Cost drivers are used as a basis for cost allocation. II. Costs are accumulated by department or function for the purposes of product costing. III. Activities that do not add value to the product are identified and reduced to the extent possible.
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?