In an activity-based costing system, direct materials used would typically be classified as a unit-level cost.

Select one:

True

False

Question 2

Activity-based costing systems have a tendency to distort product costs.

Select one:

True

False

Question 3

Consumption ratios are useful in determining the existence of product-line diversity.

Select one:

True

False

Question 4

An example of a customer-value-added activity is final painting and polishing of the product.

Select one:

True

False

Question 5

Generally speaking, companies prefer doing business with customers who order small quantities rather than large quantities.

Select one:

True

False