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NEW QUESTION: 1
Which of the following statements about activity-based costing ABC) is false?
A. Activity-based costing is more likely to result in major differences from traditional costing systems if the firm manufactures only one product rather than multiple products.
B. Activity-based costing differs from traditional costing systems in that products are cross-subsidized.
C. In activity-based costing, cost drivers are what cause costs to be incurred.
D. Activity-based costing is useful for allocating marketing and distribution costs.
Answer: A
Explanation:
ABC determines the activities that will serve as cost objects and then accumulates a cost pool for each activity using the appropriate activity base cost driver). It is a system that may be employed with job order or process costing methods. Thus, when there is only one product, the allocation of costs to the product is trivial. All of the cost is assigned to the one product; the particular method used to allocate the costs does not matter.
NEW QUESTION: 2
Other factors being equal, when the cost of inventory has increased over several financial statement periods, an agency using LIFO will:
A. show a higher value of ending inventory than a similar agency that uses FIFO.
B. need to restate their financial statements after five years of cost increases.
C. need to increase the audit frequency.
D. reflect lower net income than an agency that uses the average cost inventory method.
Answer: D
NEW QUESTION: 3
When a customer deploys an EMC Data Domain system at a remote location that does not have an IT staff, what type of remote management method(s) is possible?
A. Managed with IPMI commands only
B. Managed with iDRAC and SOL commands
C. Managed with IPMI and SOL commands
D. Managed with SOL commands only
Answer: C
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