21. ____________ are those that a company performs when it makes a group of units.
a.Batch-level activities
b.Facility-sustaining activities
c.Sustaining activities
d.Unit-level activities
22. ____________ relate to an entire plant as a whole.
a.Batch-level activities
b.Facility-sustaining activities
c.Sustaining activities
d.Unit-level activities
23. ____________ arise because a company maintains a particular product or service.
a.Batch-level activities
b.Facility-sustaining activities
c.Sustaining activities
d.Unit-level activities
24. Which of the following is not a type of sustaining activity?
a.Capacity-sustaining
b.Customer-sustaining
c.Distribution-channel sustaining
d.Unit-sustaining
25. Which of the following is true regarding activity-based management?
a.ABM is using information about activities to manage portions of the organization other than costs.
b.ABM is applying ABC to external financial reporting.
c.ABM requires the use of re-engineering principles.
d.All of the above are true.
26.The quality costs that are incurred to determine whether particular units of product meet quality standards are
a. appraisal costs.
b. external failure costs.
c. internal failure costs.
d. prevention costs.
27.The cost of downtime on machines while rework is being performed is a(n)
a. appraisal cost.
b. external failure cost.
c. internal failure cost.
d. prevention cost.
28.The cost of processing customer complaints is a(n)
a. appraisal cost.
b. external failure cost.
c. internal failure cost.
d. prevention cost.
29.Worker training is a(n)
a. appraisal cost.
b. external failure cost.
c. internal failure cost.
d. prevention cost.
30.The cost to repair a unit of product that fails after it is sold is a(n)
a. appraisal cost.
b. external failure cost.
c. internal failure cost.
d. prevention cost.
