1. What is considered an acceptable method for allocating overhead?
a. The number of units of the basis of allocation is very small
b. The number of units of the basis of allocation is very large
c. There should be as many cost pools as possible
d. You should alter the allocation method every month
2. What costs should not be considered when setting a long term price?
a. Variable costs
b. Allocated manufacturing overhead
c. Salesperson commissions
d. A fair profit margin
3. From a profit maximization perspective, the sales manager should give priority to selling products:
a. That the company is selling at a discount
b. That have a large amount of throughput
c. That have a large gross margin
d. That will become obsolete soon