Problem 1 - Multiple Choice 1 . Which one of the following is a high value-added activity? A. Set up. B. Rework C. Repair. D. Processing. 2. In regard to selling activities, which one of the following would be a cost driver for selling expense? A. Number of invoices. B. Number of sales calls. C. Number of production runs. D. Number of shipments 3. A company using a volume-based overhead assignment (allocation) method will tend to: A. Overstate the cost of low volume products. B. Understate the cost of low volume products. C. Understate the cost of high volume products D. Understate the cost of all products. 4. Which of the following activities is a facility-level activity? A. Materials handling. B. Plant maintenance. C. Product inspection. D. Design engineering. 5. The opportunity cost of making a component part in a factory with no excess capacity is the: A. Variable manufacturing cost of the component. B. Fixed manufacturing cost of the component. C. Total manufacturing cost of the component. D. Net benefit foregone from the best alternative use of the capacity required