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7. Which terms would make the following sentence true? Manufacturing companies that bene least from actlivity-based costing are those in which overhead costs are a percentage of total product cost and in which there is diversity among the various products that they produce. . high, little c. low, little 8. Using the ABC philosophy , the cost of a rodtuct s oqual to the sum f he costs of al acdbvties performed to b. all inventories should be reduced or eliminated C. only one cost driver can be used. d. the push approach should be used in the frst department of a process and the pull approach should be used in all subsequent departments 9. Which would be an appropiate cost driver activity for the cost of materials handling using activity based costing? a. number of machine setups. b. number of direct labor hours. C. number of purchase orders. d. number of materials requisitions. Which of the following is not a benefit of activity-based costing? a. Better management decisions b. Less costly to use. c. More accurate product costing 10. Enhanced control over overhead costs. d. A single plant-wide overhead rate may not correctly assign overhead costs due to: a. 11. overreliance on volume as a basis for allocating overhead costs where products differ regarding special handling, the number of units produced, lot size, or complexity cf difficulties associated with identifying the cost of activity pools. the use of direct labor hours in allocating overhead costs to products rather than machine time or quantity of materials used. b. c. d. the high correlation between direct labor-hours and the incurrence of overhead costs Page 14