100.To reduce its total batch-level costs, a company should produce its products in large batches.
True False
101.Using a single plant-wide overhead rate is likely to cause some distortion in allocation of product-level costs.
True False
102.Inspection of products may sometimes be considered a batch-level activity.
True False
103.Activity-based costing does not use volume-based cost drivers.
True False
104.In an activity-based costing system, a volume-based cost driver is appropriate for product-level activities.
True False
105.The objective of target pricing is to establish a price that will maximize profits given existing costs.
True False
106.Most companies allocate facility-level activity costs directly to products for decision-making purposes.
True False
107.Bennett Company pays its salespeople a sales commission on each sale they make. This commission is an example of an upstream cost.
True False
108.Upstream costs are relevant for deciding whether to discontinue a product line.
True False
109.Gaining personnel support and obtaining accurate data are two of the more challenging obstacles to the implementation of a successful activity based costing system.
True False