1. Which of the following costs constitutes a direct material in an Iron Foundry?
a.Welding wire
b.Sand
c.Iron Ore
d.Accounting salaries
2. Which of the following is a variable cost?
a.Property taxes
b.Commissions paid to a car salesperson
c.Heating bill
d.Electric bill
3. The second stage in an ABC costing system is to compute:
a.Assigning overhead costs to products
b.Directly expensing the costs
c.The activity rate
d.Apply the costs to the cost pools
4. Activity pools are:
a.Serve very little purpose
b.Generally aligned with the natural business process o f the company
c.Strictly an accounting function
d.Strictly a finance function