Reference no: EM132724852

Problem 1: Which of the following costs is not a product?

a. Wages paid to workers for rework on defective products
b. Wages paid to truck loaders who load finished goods onto outgoing delivery trucks
c. Fringe benefits paid to factory workers
d. Wages paid to workers to idle time due to machine breakdown in a production department

Problem 2: ABC differs from traditional product costing because it uses multiple allocation bases and therefore, allocates costs (such as overhead costs) more accurately. This normally results in

a. Equalizing set up costs for all product lines
b. Lower set up costs being charged to low volume products
c. Decreased units' costs for low-volume products than is reported by traditional product costing systems
d. Substantially greater unit costs for low-volume products than is reported by traditional product costing system.