Reference no: EM132573732

True or false

Question 1: In an activity-based costing system, the dollar amount of materials is an example of a nonvolume-related cost driver.

Question 2: In an activity-based costing system, the resource driver establishes a relationship between resource costs and activity cost pools based on some measure of usage.

Question 3: Resource category analysis describes how time, effort, and resources are spent in an enterprise, as well as the inputs and outputs of activities.

Question 4: A general conclusion concerning traditional volume-based costing systems is that low-volume products are overcosted and high-volume products are undercosted.

Question 5: In an activity flow diagram, each input and output flow line should have a noun or noun clause next to it which describes the input or output being transferred.

Question 6: A vendor financial performance measurement discloses unnecessary costs caused by a vendor's nonconformance with buyer specifications.

Question 7: After studying various performance measurements, the company should decide upon one performance measurement which will help it to make judgments and to reach conclusions.

Question 8: If a machine was needed for production for 200 hours, and it was not ready for production for 4 hours, then machine uptime is 96 percent.

Question 9: A vendor performance index (VPI) of less than one is an indication of some form of vendor nonconformance.

Question 10: Setup time is the time between the beginning of a process or activity and the appearance of its results.