When is driver tracing used?

a.When the resource is shared by more than one activity.

b.When the resource is exclusive to the activity.

c.When the resource is a labor resource.

d.All of these choices are correct.

2. According to the video, how is the cost of computers assigned to the activities?

a.Using direct tracing.

b.Using driver tracing.

c.Using both direct tracing and driver tracing.

d.Using resource drivers.

3. According to the video, what is the basis for assigning labor costs to the activity?

a.Total number of transactions.

b.Time spent on each activity.

c.Total number of employees.

d.Hours of usage of computers.

4. How are costs assigned to products?

a.By multiplying a predetermined activity rate by the usage of the activity.

b.By dividing the activity costs by the total driver quantity for each activity.

c.By dividing a predetermined activity rate by the usage of the activity.

d.By multiplying the activity costs by the total driver quantity for each activity.

5. The total cost of a resource is $160,000 and the resource is shared by three activities according to the relative usage of 20%, 30%, and 50%. How much is assigned to each activity one, two, and three?

a.Activity one $32,000

b.Activity two $48,000

c.Activity three $80,000

d.All of these choices are correct.