Reference no: EM132700494

Problem 1: The allocation base that would be most likely to be the best for allocating the indirect costs of the distribution function is

a. Number of shipments
b. Number of salespersons
c. Direct labor hours
d. Machine hours

Problem 2: Of the following, which is the best reason for using the activity-based costing?

a. To assign indirect overhead costs to different overhead pools
b. To better assign overhead costs to products
c. To keep better track of overhead costs
d. To more accurately assign overhead costs to cost pool so that these costs are better controlled

Problem 3:  A cost that remains constant in totals but varies in a per unit basis with changes in activity is called

a. Expired cost
b. Fixed cost
c. Variable cost
d. Mixed cost