Question 1
Activity-based costing did
not gain widespread popularity until
◦ 2000.
◦ 1987.
◦ 1882.
◦ 1907.
Question 2
With activity-based costing, the goal is to
◦ develop a product cost that maximizes the number of units sold.
◦ develop a product cost that eliminates all waste such as machine down time and defective products.
◦ develop a product cost that captures the amount of each resource consumed by the activities performed to produce a specific product.
◦ develop a product cost that allocates manufacturing overhead to each resource consumed by the activities performed to a group of similar products.