1. I. ABC is a system in which multiple overhead cost pools are allocated using bases that include one or more non-volume-related factors. II. Cost pool is any factor or event that causes a change in the consumption of a resource or activity cost.

a Both statements are true

b Only first statement is true

c Only second statement is true

d Both statements are false

2. An unfavorable materials quantity variance would occur if

a more materials were purchased than were used.

b actual pounds of materials used were less than the standard pounds allowed.

c actual labor hours used were greater than the standard labor hours allowed.

d actual pounds of materials used were greater than the standard pounds allowed.

3. Transferred-in cost represents the cost from

a the last department only.

b the last production cycles.

c all prior departments.

d the current period only.

4. Statement I: A cost that is useful for one decision may not be useful information for another decision. Statement II: Cost accounting information is very useful in determining product and in setting prices for the product and the service.

a True, True

b True, False

c False, False

d False, True