Which step is NOT used in the allocation of indirect costs to cost objects? A) Accumulate indirect costs for a period of time in a cost pool. B) Select an allocation base for each cost pool. C) Determine the percentage of the cost pool used for each cost object. D) Measure the units of the cost-allocation base used for each cost object. Which statement is FALSE regarding the linear regression method to approximate a linear cost function? A) The first step is to plot the historical data points on a graph. B) Outliers should be removed from the analysis. C) Provides statistical information about the reliability of its cost estimates. D) The point at which the line intersects the Y-axis is the estimate of variable costs. A traditional costing system would be appropriate if a company A) manufactures hundreds of different products B) has complex production operations C) manufactures simple and complicated products D) has a plausible and reliable relationship between a single cost driver and all the indirect resource costs being allocated Examples using activity-based costing generally show that traditional costing systems high-volume, simple products and complex products. low-volume, A) undercost; overcost B) overcost; undercost C) undercost; undercost D) overcost; overcost When determining product cost the last step in cost allocation traditionally is A) divide costs in each producing department into direct costs and indirect costs B) trace direct costs to products C) select cost pools and cost allocation bases in each production department and assign indirect department costs to the appropriate cost pool D) allocate the costs in each cost pool to the product in proportion to the usage of the When determining product cost the last step in cost allocation traditionally is A) divide costs in each producing department into direct costs and indirect costs B) trace direct costs to products C) select cost pools and cost allocation bases in each production department and assign indirect department costs to the appropriate cost pool D) allocate the costs in each cost pool to the product in proportion to the usage of the related cost-allocation base