A(n) ____ ratio measures the proportion of an activity consumed by a product
consumption
Setups, material handling, and inspection are all possible examples of
non unit-level overhead activities
activity drivers can be classified as either ____ or _____.
unit-level; non unit-level
Product diversity means that products consume overhead activities in systematically different proportions
true
a volume-based costing system emphasizes direct tracing and driver tracing
false
a volume-based costing system tends to be allocation-intensive
unit-level activities are performed each time a unit is produced
true
___ is present whenever products have different consumption ratios for different overhead activities
product diversity
using only unit-based activity drivers to assign nonunit-related overhead costs can cause
distorted product costs
the consumption ratio is the amount of each activity consumed by a product
true
activity drivers should be classified as either unit-level or nonunit-level
true
___ costs in many firms represent a much higher percentage of product costs than direct labor
overhead
an activity dictionary lists the activities in an organization along with some critical activity attributes
true
a work distribution matrix is derived from an interview or a written survey
true
in an activity dictionary, types of resources consumed is an example of a(n)
activity attribute
____ are assigned using direct tracing and resource drivers
costs
a(n) ___ is derived from the interview process (or written survey)
work distribution matrix
resource drivers are factors that measure the consumption resources by product
false
resource drivers are factors that measure the consumption of resources by activities
___ can help a company become more competitive by providing more accurate cost data
activity-based costing
interviews and surveys are used to identify
activities
a list of activities accompanied by information that describes each activity is an activity ____.
dictionary
an activity-based costing system first assigns costs to activities and then to cost objects
true
a costing system that first assigns costs to activities and then to products is
activity-based costing