MANAGERIAL ACCOUNTING

Traditional and activity-based costing methods are different each other in determining: A. Direct material costs B. Direct labor costs C. Manufacturing overhead costs D. (B) and (C) above E. All of the above 1. 2. Activity-based costing involves a two-stage allocation in which overhead costs are first assigned to Aand then to on the basis of different drivers. A. Departments, Products B. Activity cost pools, Products C. Resources, Activity cost pools D. Products, Departments E. Departments, Activity cost pools 3. Typically, machine setup is a(n): A. unit-level activity B. batch-level activity C. product-level activity D. customer-level activity. E. facility-level activity. 4. Activity-based costing is much more accurate than volume-based traditional costing if: A. The majority of activities are non unit-level (batch, product, or facility-level) activities. B. The company manufactures a single product C. Overhead is a very minor part of the total costs. D. Direct materials and direct labor costs are of the same amount. 5. Compared to activity-based costing, traditional costing over-costs A. new products. B. existing products. C. high-volume products. D. low-volume products. E. all products