Chapter 7

Costs at the batch level depend on the number of __________. A. units sold B. batches processed C. products in a batch D units produced

B

Setting up equipment, placing purchase orders, and arranging shipments to customers are all examples of ______________ -level activities. (Enter only one word per blank.)

batch

Activities such as design or engineering changes for an item being produced are referred to as _____________ -level activities.(Enter only one word per blank.)

product

Activity based costing provides managers with information that potentially affects ____________. A. both fixed and variable costs B. only variable costs C. only fixed costs D. neither fixed nor variable costs

A

Overhead includes both manufacturing and non-manufacturing costs under _____________ costing. A. both activity-based and traditional absorption B. activity-based C. traditional absorption D. neither activity-based or traditional absorption

B

Some manufacturing costs may be excluded from product costs when using ___________ costing. A. traditional absorption B. either traditional absorption or activity-based C. neither traditional absorption nor activity-based D. activity-based

D