Answer the Following Question(s)using the Information Below

question 79

Multiple Choice

Answer the following question(s) using the information below.Products S5 and CP8 each are assigned $50.00 in indirect costs by a traditional costing system.An activity analysis revealed that although production requirements are identical, S5 requires 45 minutes less setup time than CP8.
-According to an ABC system, S5 uses a disproportionately

• A)smaller amount of unit-level costs.
• B)larger amount of unit-level costs.
• C)smaller amount of product-sustaining costs.
• D)larger amount of batch-level costs.
• E)smaller amount of batch-level costs.

---

Definitions:

Break-even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.

Unit Variable Costs

The costs that vary directly with the level of production or output.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Break-even Analysis

A calculation to determine the point at which revenue received equals the costs associated with receiving the revenue, indicating no net loss or gain.