p r o b l e m2- west chester university(p r o b l e m2- west chester university).docVIP

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p r o b l e m2- west chester university(p r o b l e m2- west chester university).doc

Name_____________________________ 1. Volume-based plant-wide rates produce inaccurate product cost when: A) a large share of factory overhead cost is not volume-based. B) firms produce a diverse mix of product. C) different products consume different amounts of batch-level and product level costs. D) all of the above are correct. E) None of the answers above is correct. 2. As with any costing system, a firm should use activity-based costing (ABC) when the: A) currently used system doesnt seem to be working. B) benefits of such a system exceed the cost of implementation. C)

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