accounting test 2 Activity based management refers to using activity based cost information to make decisions that may increase profits while satisfying customers' needs TRUE FALSE There will be little benefit to using an activity based costing sysyem when products are vastly different from each other and consume different amounts of resources TRUE FALSE The goal of value engineering is to (a) improve value- added activities (b) eliminate or reduce non-value added activities (c) both A and B (d) none of the above Waste activities is another name for non-value-added-activities TRUE FALSE Which of the following is a sign that a product cost system is not working properly? (a) the cost system was installed 5 years ago (b) the cost system is fully depreciated (c) the cost system has multiple allocation bases (d) managers don't understand costs and profits The high-low method is theoretically better than regression analysis because the high-low method uses more data points than regression analysis TRUE FALSE Total fixed costs do not change in response to changes in the volume of production TRUE FALSE Total fixed costs for Green Planes Inc are $130,000

1. Activity based management refers to using activity based cost information to make decisions that may increase profits while satisfying customers' needs
   TRUE
   FALSE

TRUE

2. There will be little benefit to using an activity based costing sysyem when products are vastly different from each other and consume different amounts of resources
   TRUE
   FALSE

FALSE

3. The goal of value engineering is to
   (a) improve value- added activities
   (b) eliminate or reduce non-value added activities
   (c) both A and B
   (d) none of the above

(c) both A and B

4. Waste activities is another name for non-value-added-activities
   TRUE
   FALSE

TRUE

5. Which of the following is a sign that a product cost system is not working properly?
   (a) the cost system was installed 5 years ago
   (b) the cost system is fully depreciated
   (c) the cost system has multiple allocation bases
   (d) managers don't understand costs and profits

(d) managers don't understand costs and profits

6. The high-low method is theoretically better than regression analysis because the high-low method uses more data points than regression analysis
   TRUE
   FALSE

FALSE

7. Total fixed costs do not change in response to changes in the volume of production
   TRUE
   FALSE

TRUE

8. Total fixed costs for Green Planes Inc are $130,000. Total costs, including both fixed and variable, are $600,000 if 150,000 units are produced. The total variable costs at a level of 220,000 units would be
   (a) $176,000
   (b) $880,000
   (c) 704,000
   (d) $409,091

(c) $704,000

9. Relevant range is the range of activity (volume) over which total fixed costs and variable costs per unit can be assumed to remain the same
   TRUE
   FALSE

TRUE

10. What variable represents the volume of activity in the equation y=vx + f? (assume v represents the variable cost per unit of activity)
    (a) v
    (b) vx
    (c) y
    (d) x

(d) x