If substantial batch-level or product-level costs exist, then overhead allocation based on a measure of volume such as direct labor-hours alone: a)...

1. If substantial batch-level or product-level costs exist, then overhead allocation based on a measure of volume such as direct labor-hours alone: a)is a key aspect of the activity-based costing model. b)will systematically overcost high-volume products and undercost low-volume products. c)will systematically overcost low-volume products and undercost high-volume products. d)must be used for external financial reporting since activity-based costing cannot be used for external reporting purposes. 2. The opportunity cost of using one unit of the constrained resource in a volume trade-off decision is equal to: a)the profitability index for the company's best selling product. b)the profitability index for the product whose production would be cut back if necessary. c)the profitability index of the product with the fastest growing sales. d)the profitability index of the company's most profitable product.3. Of the following transfer pricing methods which is often regarded as the best? a)Administered transfer price b)Market-based transfer price c)Cost-based transfer price d)Negotiated transfer price4. A good description of "cost of goods manufactured" is the recorded cost of the: a)units completed during the period. b)units started and completed during the period. c)work done on all units during the period. d)work done this period on units completed this period.5. A company has two divisions, the Selling Division and the Buying Division. The Selling Division manufactures an intermediate product and then "sells" them to the Buying Division, which completes the product and sells the final product to retailers. The market price for the Buying Division to purchase one unit of the intermediate product is $20. Fixed costs assume 100,000 units.Unit costs for the intermediate product of the Selling Division are: