Please help me with these multiple-choice questions.
Multiple Choice Questions -3 points each 1. Activity-based costing CANNOT be used for which of the following purposes? A. Determining whether to discontinue a product B. Evaluating the profitability of sales made to a customer C. Identifying D. Determining a product's market share areas for process improvements 2. Which of the following statements about activity-based costing is FALSE? A. Activity-based costing recognizes that not all overhead is volume-related. B. One activity is usually sufficient to allocate overhead costs to products. C. Products which place a greater demand on a resource will be charged with more of the cost of that resource. D. Costs are identified with the activities that create the costs, then the activity cost is charged to products based on the products' consumption of the activities. 3. Activity-based costing is believed to be a better method for allocating overhead than the traditional one-rate method for all of the following reasons EXCEPT A. the traditional method treats overhead as indirectly related to products, whereas activity based costing treats overhead cost as directly related to activities which are, in turn, directly related to products. B. activity-based costing considers the demand a product places on various activities, whereas the traditional method only considers the demand a product places on one activity. C. activity-based costing recognizes that overhead cost is created by many different activities. D. activity-based costing requires more complex calculations. 4. Which of the following would be considered a non-value-adding activity? A. A painter cleans up spills at a customer's house. B. An accountant files a tax return with the federal government. C. An assembly line worker installs a battery in a cell phone. D. A teacher takes students on a field trip to a local museum 12. Doggie Company has the following production budget for one of its products for the first quarter of 2016: Month January February March Production 18,300 16,500 12,000 Each unit requires 2 pounds of material K9, which costs $5 per pound. Doggie has 1,000 pounds of K9 on hand on December 31, 2015 and wants an inventory of K9 equal to 10% percent of the next month's production requirements. What is the cost of K9 purchased in February? A. $160,500 B. $194,500 C. $169,500 D. $163,200 13. The production budget is required to prepare all of the following budgets EXCEPT A. the overhead budget. B. the selling and administrative budget. C. the labor budget. D. the materials purchase budget 14. A company is formulating its plans for the coming year, including the preparation of its cash budget. The collection pattern for the credit sales is as follows: Collections on Account In the month of the sale In the month following the sale Two months following the sale Uncollectible Percentage 60% 20% 15% 5% Total sales for the first 4 months of the coming year are forecast as follows: $4,000,000 3,400,000 2,800,000 3,800,000 January February March April How much would the company expect to collect in April? A. $3,550,000 B. $3,800,000 C. $2,280,000 D. $3,350,000