Question: 5-1 A batch-level driver is consumed by a product each and every time that a. a batch of products is produced. b. a unit is



5-1 A batch-level driver is consumed by a product each and every time that a. a batch of products is produced. b. a unit is produced. c. a purchase order is issued. d. a customer complains. e. None of these. Use the following information for Multiple-Choice Questions 5-3 and 5-4: Consider the information given on two products and their activity usage: Units produced Setup hours Inspection hours Machine hours Laser Printer Inkjet Printer 1,000 4,000 800 400 500 500 200 1,000 5-3 Refer to the information above. The consumption ratios for the inspection activity for each product are a. 0.167;0.833. b. 0.333; 0.667. c. 0.500; 0.500. d. 0.667;0.333. e. None of these. 5-4 Refer to the information above. Suppose that machine hours are used to assign all overhead costs to the two products. Select the best answer from the following: a. Laser printers are overcosted, and inkjet printers are undercosted. b. Laser printers and inkjet printers are accurately costed. c. Laser printers are undercosted, and inkjet printers are overcosted. d. Using inspection hours to assign overhead costs is the most accurate approach. e. None of these. 5-6 The second stage of ABC entails the assignment of a. activity costs to products or customers. b. resource costs to departments. c. resource costs to a plantwide pool. d. resource costs to individual activities. e. resource costs to distribution channels
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