2. This year Lambert Company will ship 1500000 pounds of goods to customers at a

2. This year Lambert Company will ship 1500000 pounds of goods to customers at a cost of $1200000. If a customer orders 10000 pounds and produces $200000 of revenue (total revenue is $20 million) the amount of shipping cost assigned to the customer by using ABC would bea. cannot be determined.b. $24000 (2 percent of the shipping cost).c. $8000 ($0.80 per pound shipped).d. $12000 (1 percent of the shipping cost).e. none of the above.3. Lambert Company has two suppliers: Deming and Leming. The cost of warranty work due to defective components is $2000000. The total units repaired under warranty average 100000 of which 90000 have components from Deming and 10000 have components from Leming. Select the items below that represent true statements.a. Components purchased from Deming cost $200000more than their purchase price.b. Components purchased fromLeming cost $1800000more than their purchase price.c. Components from Deming appear to be of higher quality.d. All of the above are true.e. None of the above is true.4. A forklift and its driver used for moving materials are examples ofa. activity outputs.b. activity output measures.c. resource drivers.d. activity inputs.e. root causes.5. Which of the following are nonvalue-added activities?a. Moving goodsb. Storing goodsc. Inspecting finished goodsd. Reworking a defective producte. All of the above6. Suppose that a company is spending $50000 per year for inspecting $40000 for purchasing and $60000 for reworking products. A good estimate of nonvalue-added costs would bea. $110000.b. $50000.c. $60000.d. $90000.e. $100000.7. The cost of inspecting incoming parts is most likely to be reduced by a. activity sharing.b. activity selection.c. activity reduction.d. activity elimination.e. none of the above.8. Thom Company produces 100 units in 5 hours. The cycle time for Thom a. is 20 units per hour.b. is 5 hours per unit.c. is 3 minutes per unit.d. is 1 hour per 20 units.e. cannot be calculated.9. Thom Company produces 100 units in 5 hours. The velocity for Thom a. is 20 units per hour.b. is 5 hours per unit.c. is 3 minutes per unit.d. is 1 hour per 20 units.e. cannot be calculated.10. Striving to produce the same activity output with lower costs for the input used is concerned with which of the following dimensions of activity performance?a. Qualityb. Timec. Activity sharingd. Efficiencye. Effectiveness