Question

21. Volume-based (traditional, plant-wide)) cost systems tend to a. Under-cost low-volume products and under-cost high-volume products b. Under-cost low-volume products and over-cost high-volume products c. Over-cost low-volume products and under-cost high-volume products. d. Over-cost low-volume products and over-cost high-volume products.


22. Non-value-added activities are: a. also called waste activities b. activities that neither enhance the customer’s image of the product or service nor provide a competitive advantage c. activities that could be reduced or removed from the process with no ill effect on the end product or service d. all of the above

Answer 1

Solution 21:

Volume-based (traditional, plant-wide)) cost systems tend to "Under-cost low-volume products and over-cost high-volume products".

Hence option "b" is correct.

Solution 22:

Non-value-added activities are also called waste activities, activities that neither enhance the customer’s image of the product or service nor provide a competitive advantage,  activities that could be reduced or removed from the process with no ill effect on the end product or service.

Hence all of the above are correct.

Hence option "d" is correct.