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?
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?