Question: 1. The activity-based costing system improves the allocation of: a. indirect manufactuing costs. b. direct labor. c. direct materials. d.sales commissions. 2. Which of the

1. The activity-based costing system improves the allocation of:

a.

indirect manufactuing costs.
b.

direct labor.
c.

direct materials.

d.sales commissions.

2. Which of the following is a disadvantage of decentralization?

a.

increases the customer response time
b.

only the top management is allowed to make decisions
c.

demotivates employees as the decision making powers are not delegated

d. problems in achieving goal congruence

3. The predetermined overhead allocation rate is an estimated overhead cost per unit of the allocation base and is calculated at the beginning of the accounting period.

True

False

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