1. Using Normal Costing, the PDOR rate is calculated by dividing:

	A.	actual overhead costs by the actual quantity of the allocation base
	B.	the actual overhead costs by the estimated quantity of the allocation base
	C.	the estimated overhead costs by the actual quantity of the allocation base
	D.	the estimated overhead costs by the estimated quantity of the allocation base

2. Conversion costs include

	A.	Direct Materials and Manufacturing Overhead
	B.	Direct Labor and Direct Materials
	C.	Direct Labor and Manufacturing Overhead
	D.	None of the above.

3. Activity-based costing is most likely to yield benefits for companies with all of the following characteristics EXCEPT:

	A.	numerous products that consumer different amounts of resources
	B.	small mom & pop operations where similar products use the same resources.
	C.	a highly competitive environment, where cost control is critical
	D.	a large accounting department with resources to implement the costing system

4. The type of costing system commonly used by companies that produce a large number of homogeneous units in a continuous production process is called a

	A.	unit costing system.
	B.	job-order system.
	C.	management cost system.
	D.	process costing system.

5. The cost per equivalent unit calculation is

	A.	the cost from beginning inventory and current production divided by equivalent units.
	B.	based only on the costs incurred in this period.
	C.	biased if there are any units in the beginning Work in Process inventory.
	D.	simplified if a department has transferred-in costs.