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A computer manufacturers spending on testing its computers before shipping them to customers helps reduce which of the folloThe information provided by an activity-based costing system can help with what type of decisions by an automobile manufacturThe legal costs associated with filing a patent for a new model of scooter at a toy manufacturer is an example of which typeWhich costing system is most likely to produce the least cost distortion? O A. Traditional costing system OB. Departmental ovA window manufacturer has a commitment to lean production. What is not a benefit from adopting a lean production philosophy?

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1) Option C, External Failure Cost

Testing of the computers before shipping them to customers is appraisal cost. This would ensure that the product is as per the customer specifications. If the product is as per the customer specifications, external failure cost need not be incurred. Therefore testing of computers before shipping to customers reduces external failure cost.

2) Option D, all of the listed options are correct.

3) Option A, Product level activity

The legal cost of filing patent for a new model of scooter is associated with a particular product irrespective of the number of units or batches produced. Therefore it is product level activity.

4) Option C, Activity Based Costing

Activity based costing involves more accurate way of allocating costs with reduced cost distortions.

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