Following is a list of statements. Identify each statement as true or false. 1. A products cost
Question:
Following is a list of statements. Identify each statement as true or false.
1. | A product’s cost can be estimated most accurately when this cost can be traced directly to the product produced or the service provided. | select an option | ||
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2. | Overhead costs are the easiest costs to determine because they can be traced easily to the product. | select an option | ||
3. | Activity-based costing (ABC) is an approach for allocating direct labour to products. | select an option | ||
4. | An activity cost pool is any factor or activity that has a direct cause-effect relationship with the resources consumed. | select an option | ||
5. | Machine hours and direct labour hours are examples of cost drivers. | select an option | ||
6. | As manufacturing processes have become more automated, more companies have chosen to allocate overhead on the basis of direct labour costs. | select an option | ||
7. | When overhead cost allocation systems were first developed, it was widely accepted that there was a high correlation between direct labour and overhead costs. | select an option | ||
8. | Traditional costing systems allocate costs to departments or jobs. | select an option | ||
9. | Activity-based costing is a one-step costing system. | select an option | ||
10. | A traditional costing system allocates overhead by means of multiple overhead rates in each department. | select an option |