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ACCT 434 Week 1 Quiz Activity Based Costing

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5. Question : (TCO 1) To set realistic selling prices<br />

6. Question : (TCO 1) Different products consume different proportions of<br />

manufacturing overhead costs because of differences in all of the following EXCEPT<br />

7. Question : (TCO 1) A well-designed, activity-based cost system helps managers<br />

make better decisions because information derived from an ABC analysis<br />

8. Question : (TCO 1) Companies use ABC system information to<br />

9. Question : (TCO 1) For service organizations that bill customers at a<br />

predetermined average rate, activity-based cost systems can help to<br />

10. Question : (TCO 1) Danielle Company produces a special spray nozzle. The<br />

budgeted indirect total cost of inserting the spray nozzle is $180,000. The budgeted<br />

number of nozzles to be inserted is 60,000. What is the budgeted indirect cost<br />

allocation rate for this activity?<br />

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