Question 1. The last step in the FIFO process-costing method is _____.
a) assign total costs to units completed
b) computer output in terms of equivalent units
c) summarize total costs to account for
d) compute costs per equivalent unit
Question 2. Undercosting a particular product may result in _____.
a) loss of market share
b) lower profits
c) operating inefficiencies
d) understanding total product costs
Question 3. ABC systems _____.
a) highlight the different levels of activities
b) limit cost drivers to units of output
c) allocate costs based on the overall level of activity
d) generally undercost complex products
Question 4. Companies use ABC system information to _____.
a) analyze costs
b) prepare budgets
c) evaluate performance
d) all of these answers are correct.
Question 5. The primary reason to refine a costing system is _____.
a) to decrease product diversity
b) to increase indirect costs
c) to increase direct costs
d) all of the above