31.Activity-based costing is much easier to apply than single plantwide factory overhead allocation.
a.True
b.False
32.Service organizations can use activity-based costing to allocate selling and administrative costs to services provided.
a.True
b.False
33.ABC is used to allocate selling and administrative expenses to each product based on the product’s individualdifferences in consuming these activities.
a.True
b.False
34.Activity-based costing can be used to allocate period costs to various products that the company sells.
a.True
b.False
35.Activity-based costing can only be used to allocate manufacturing factory overhead.
a.True
b.False
36.In a service organization, the multiple department overhead rate method is the most effective in providinginformation about the cost of services.
a.True
b.False
37.Service companies can effectively use multiple department overhead rate costing to compute product (service)costs.
a.True
b.False
38.Service companies can effectively use single facility-wide overhead costing to compute product (service) costs.
a.True
b.False
39.Service companies can effectively use activity-based costing to compute product (service) costs.
a.True
b.False
40.Which of the following does
notrely on managerial decisions involving accurate product costing?
a.product constraints
b.emphasis of a product line
c.product mix
d.product price