Question: 98 1. The plant manager's salary is an example of a: a. Unit-level activity b. Batch-level activity c. Product-level activity d. Organization-sustaining activity (Please explain) 2. Under absorption costing, fixed manufacturing overhead cost is not included in product cost. True or False. Explain 3. Organization-sustaining overhead costs should be allocated to products just like unit-level and product-level activities. True or False. Explain 4. Because absorption costing emphasizes costs by behavior, it works well with cost-volume- profit analysis. True or False. Explain.
Question: 98 1. The plant manager's salary is an example of a: a. Unit-level activity b. Batch-level activity c. Product-level activity d. Organization-sustaining activity (Please explain) 2. Under absorption costing, fixed manufacturing overhead cost is not included in product cost. True or False. Explain 3. Organization-sustaining overhead costs should be allocated to products just like unit-level and product-level activities. True or False. Explain 4. Because absorption costing emphasizes costs by behavior, it works well with cost-volume- profit analysis. True or False. Explain.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Question: 98
1. The plant manager's salary is an example of a:
a. Unit-level activity
b. Batch-level activity
c. Product-level activity
d. Organization-sustaining activity
(Please explain)
2. Under absorption costing, fixed manufacturing overhead cost is not included in product cost.
True or False. Explain
3. Organization-sustaining overhead costs should be allocated to products just like unit-level and
product-level activities. True or False. Explain
4. Because absorption costing emphasizes costs by behavior, it works well with cost-volume-
profit analysis. True or False. Explain.
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