1. When traditional absorption costing is employed, which of the following is false?

A. In a multi-product organization, product costs are properly reported for financial reporting purposes

B. In a single product organization, product costs are properly reported for financial reporting purposes

C. In a multi-product organization, product costs are accurately reported for decision-making purposes

D. In a single product organization, product costs are accurately reported for decision-making purposes

E. None of the above

2. Internal accounting systems, including performance measures, affect behavior. It is often suggested that people pay attention to the dimensions of their work performance that are measured and rewarded. When, if ever, should these systems be revised?

A. Extremely seldom: it is too costly

B. Rarely: people understand how to perform under the present system

C. Sometimes: whenever it can be shown that significant dysfunctional results exist

D. Often: whenever management consultants develop a ‘new and improved' system or measure

E. Never