Question : 31. Which of the following statements true regarding a cost driver? A. Once : 1291686

Economics

31. Which of the following statements is true regarding a cost driver? A. Once a particular cost driver has been used for an activity, it may not be used again.B. Employees should never be made aware of the cost drivers for their department.C. There may be more than one potential cost driver for a particular activity.D. Choosing the wrong cost driver should not impact the determination of a product’s cost.

32. Which of the following statements is false regarding cost drivers? A. A particular cost driver may be used for more than one activity.B. If employees know the cost driver(s) for their department, it may motivate them to be more efficient.C. The selection of a cost driver should be based on the correlation it has with direct materials used in the production process.D. The best cost driver for a particular activity may be different from one company to the next.

33. Which of the following would be the least likely cost driver for an activity such as the usage of factory supplies? A. Machine hoursB. Number of engineering hoursC. Direct labor hoursD. Number of units produced

34. Which of the following would be the least likely cost driver for an activity such as the repair and maintenance of factory equipment? A. Machine hoursB. Direct labor hoursC. Number of units producedD. Number of new product designs

35. Which of the following would be the least likely cost driver for an activity such as product testing? A. Number of shipments receivedB. Number of testsC. Hours of testing timeD. Number of change orders

36. Which of the following statements comparing traditional and activity-based costing (ABC) is false? A. Traditional systems are generally less accurate than ABC systems.B. ABC and traditional systems often produce different product cost information.C. ABC systems focus on activity costing while traditional systems focus on volume costing.D. ABC systems are generally less expensive to implement than traditional systems.

37. Which of the following statements comparing traditional and activity-based costing (ABC) is true? A. ABC systems eliminate cross subsidies.B. Traditional systems eliminate cross subsidies.C. ABC and traditional systems often produce similar product cost information.D. All of the above are true.

38. Which of the following statements is true regarding cross subsidies? A. They occur when factory workers are trained to work on many different machines.B. They occur when high-volume products are assigned more than their fair share of overhead costs.C. They occur when high-volume products have more direct material and direct labor costs than overhead costs.D. They occur when more than one cost driver can be determined for a particular overhead cost item.

39. What would one expect to occur when cross subsidies are eliminated with the use of activity-based costing (ABC)? A. That lower-volume products pick up more of their fair share of overhead costs.B. That higher-volume products pick up more of their fair share of overhead costs.C. That lower-volume products will be determined as being unprofitable.D. That higher-volume products will be determined as being unprofitable.

40. Aunt Lucy’s CandiesAunt Lucy’s Candies sells standard and premium chocolate candies through its catalog business. Many of the candies are sold in bulk to other companies. Last year, the company incurred $400,000 in overhead costs. After implementing activity-based costing (ABC), the company’s controller identified the following information:

Activity

Allocation Base

Proportion of Overhead Cost

Purchasing

Number of purchase orders

30%

Processing

Number of units

50%

Sales

Number of sales orders

20%

The number of activities for standard and premium candies is as follows:

Standard

Premium

Number of purchase orders

6,000

4,000

Number of units

400,000

100,000

Number of sales orders

2,000

3,000

Refer to the Aunt Lucy’s Candies information above. What is the overhead rate for the processing activity? A. $0.92 per unitB. $1.44 per unitC. $0.40 per unitD. $0.72 per unit

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July 1, 2023

1) Members of OSHA's $100,000 club have:

A) invested more than $100,000 in health and safety equipment for employees.

B) purchased health and safety insurance coverage of at least $100,000.

C) received fines of $100,000 or more for safety or health violations.

D) paid more than $100,000 in workers' compensation claims.

2) Workplace safety is a significant issue because approximately ________ employees were injured on the job in 2009.

A) 3,000,000

B) 1,000,000

C) 500,000

D) 250,000

3) According to the doctrine of contributory negligence, employers were:

A) not responsible for an employees' injury when another employee's negligence caused the injury.

B) not liable for an employee's injuries when that employee's own negligence caused the injury.

C) responsible for compensating employees for all work-related illnesses and accidents.

D) not responsible for any employees' injuries under any circumstances.

4) Workers' compensation laws vary by state, but all are built on the theory that:

A) employees' personal health insurance should pay the medical costs of any injuries.

B) work-related accidents are costs of doing business and should be paid for by employers.

C) governments are responsible for paying the medical costs related to an employee's injuries.

D) employers are not responsible for employee injuries resulting from the employee's own negligence.

5) Which of the following is a true statement about workers' compensation?

A) Workers' compensation laws are federally mandated and enforced by OSHA.

B) Non-union firms are not required to carry workers' compensation insurance.

C) Workers' compensation is not mandatory in all U.S. states.

D) Most states had workers' compensation programs by 1911.

6) Workers' compensation:

A) pays only if the worker cannot.

B) is considered a no-fault system.

C) is mandatory in all fifty states.

D) covers employees' medical costs with Medicaid.

7) The primary goal of state workers' compensation laws is best described as:

A) providing a means for injured workers to receive care and income without having to sue.

B) determining the cause of work-related accidents and minimizing future accidents.

C) ensuring that employers are not held responsible for accidents caused by worker negligence.

D) spreading the cost of workplace accidents among all workers in the state.

8) The ________ holds that employers are not held liable for an employee's injuries when the negligence of another employee contributed to or caused the accident.

A) doctrine of contributory negligence

B) fellow-servant rule

C) general duty provision

D) "no-fault" rule

9) Which of the following is most likely true?

A) Workers' compensation is a federal program. OSHA is the organization that helps individual states meet workers' compensation standards.

B) Workers' compensation is a federal program that provides compensation to employees injured on the job. OSHA is a federal program that creates and enforces safety standards in the work place.

C) OSHA is a federal program that creates safety standards for work environments. Workers' compensation programs are created by the individual states to provide compensation for employees injured on the job.

D) OSHA is a federal program that provides compensation for employees injured on the job. Workers' compensation programs are state programs that provide compensation for employees injured on the job.

10) Workers' compensation:

A) replaces the worker's entire income until he/she is able to work again.

B) provides benefits for permanent, but not temporary, impairment.

C) gives survivors burial allowances and income benefits.

D) covers medical expenses up to $100,000.