Quiz 1 (AMAD223)

Under direct costing system, the indirect costs are assigned to cost objects

• TRUE

• FALSE

Direct costing system is appropriate where the majority of costs are direct

• TRUE

• FALSE

Traditional costing system rely on arbitrary allocation bases.

• TRUE

• FALSE

ABC system use only cause-and-effect cost drivers.

• TRUE

• FALSE

ABC system appropriate when the production is for the limited range of products

• TRUE

• FALSE

Choice of activities influenced by the total cost of the activity centre and the ability of a single cost driver to provide a satisfactory determinant of the cost of the activity.

• TRUE

• FALSE

Costs assigned to activity cost pools will exclude indirect costs.

• TRUE

• FALSE

Activity cost drivers consist of transaction and duration drivers.

• TRUE

• FALSE

The cost driver must be measurable so that it can be identified with individual products.

• TRUE

• FALSE

There are five classification of activities.

• TRUE

• FALSE