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1. Which of the following is not a service department in a typical manufacturing

ID: 2353355 • Letter: 1

Question

1.
Which of the following is not a service department in a typical manufacturing firm?
A) personnel

B) security

C) fabrication

D) maintenance


8.
Cool Company uses ABC costing. Which of the following is most likely to be the cost driver for the cost of ordering parts?
A) weight of parts ordered

B) direct labor cost

C) number of orders placed

D) depreciation expense


13.
Which of the following is not generally true when a company compares ABC and traditional costing?
A) ABC allocates cost based solely on production volume.

B) ABC is more expensive.

C) ABC generally provides more accurate costs
D) ABC uses more cost drivers.

Explanation / Answer

Any department which provide facility directly is called service department. 1. C) 8. c) 13. A)