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 ?