Question : 1. Activity-based costing best suited for which type of cost? A. Direct materialsB. Direct : 1295578

1. Activity-based costing is best suited for which type of cost? 
A. Direct materials
B. Direct labor
C. Manufacturing overhead
D. Administrative costs

2. As companies experience a shift from labor-intensive operations to machine-automated operations, which of the following costs becomes more difficult to trace to products? 
A. Administrative costs
B. Direct labor costs
C. Direct material costs
D. Overhead costs

3. Traditional overhead allocation methods as opposed to activity-based allocation methods work best when: 
A. there are many different volume-based cost drivers.
B. most costs are unit-level costs.
C. overhead can be estimated.
D. most costs are facility-level costs.

4. Which of the following statements associated with traditional overhead allocation is true? 
A. A traditional overhead allocation method is the most accurate in automated environments with diverse products.
B. A traditional overhead allocation method can also be referred to as activity-based costing.
C. A traditional overhead allocation method provides the most accurate product cost information.
D. A traditional overhead allocation method usually uses one or two volume-based cost drivers.

5. Troxler Inc. produces various types of floor rugs with many different designs. They typically produce at least 200 rugs with a single machine setup. A cost incurred every time an individual rug is produced is called a: 
A. product-level cost.
B. batch-level cost.
C. unit-level cost.
D. facility-level cost.

6. Troxler Inc. produces various types of floor rugs with many different designs. They typically produce at least 200 rugs with a single machine setup. A cost incurred each time a machine is set up is called a: 
A. product-level cost.
B. batch-level cost.
C. unit-level cost.
D. facility-level cost.

7. Troxler Inc. produces various types of floor rugs with many different designs. They typically produce at least 200 rugs with a single machine setup. A cost incurred each time a new rug design is developed is called a: 
A. product-level cost.
B. batch-level cost.
C. unit-level cost.
D. facility-level cost.

8. Troxler Inc. produces various types of floor rugs with many different designs. They typically produce at least 200 rugs with a single machine setup. A cost incurred to sustain the overall manufacturing process is called a: 
A. product-level cost.
B. batch-level cost.
C. unit-level cost.
D. facility-level cost.

9. Herndon Brothers Inc. produces a variety of “all natural” household cleaning supplies that it manufactures and distributes to various grocery stores along the west coast. Which of the following types of costs would most likely be a unit-level cost? 
A. A package product design cost
B. A machine setup cost
C. Depreciation on the factory building
D. Utility costs for factory machinery

10. Herndon Brothers Inc. produces a variety of “all natural” household cleaning supplies that it manufactures and distributes to various grocery stores along the west coast. Which of the following types of costs would most likely be a product-level cost? 
A. A package product design cost
B. A machine setup cost
C. Depreciation on the factory building
D. Utility costs for factory machinery