2009-01-25_013419_hlcmh_2 - Multiple Choice Questions 1 and...

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Multiple Choice Questions 1. ________ and ________ are typically the measures of volume of activity in traditional volume-based cost systems. A. Practical capacity; products sold B. Direct labor hours; practical capacity C. Direct labor hours; machine hours D. Square footage; machine hours 2. Traditional cost systems distort product costs because: 3. Unit-level drives in traditional cost systems distort product costs because they: 4. The use of unit-level measures to assign support costs is more likely to: 5. Misleading product cost numbers are MOST likely the result of misallocating: A. Direct material costs B. Direct manufacturing labor costs C. Support cost D. All of the above are correct
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