A company that uses activity-based costing would likely allocate costs from:
A. activity-cost pools to products and services.
B. service departments to production departments.
C. service departments to products and services.
D. service departments to production departments and then to products and services.
E. activity-cost pools to production departments.
Answer: A
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Juan is faced with multiple choices of suppliers who have the same product at virtually the same price. He also knows there are many more suppliers out there that would be comparable; however, he has a short amount of time to make up his mind, so he chooses Elrood Gasket's product. Why type of decision does this represent?
A. groupthink B. confirmation C. bounded D. satisficing E. programmed
In addition to focusing on controls, COBIT 5 expands its scope by incorporating which of the following broad perspectives?
A. How IT can automate specific business processes. B. IT networking requirements. C. IT cost reductions. D. How IT brings value to the firm.
A holder in due course takes a negotiable instrument free of all personal defenses and claims to the instrument, but is subject to claims in recoupment either of the person obligated on the instrument or of a third party.
Answer the following statement true (T) or false (F)
A company has two products: Big and Little. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:??Budgeted ActivityActivity Cost PoolBudgeted CostBig ProductLittle ProductActivity 1$72,0001,2002,800Activity 2$91,0005,2501,750Activity 3$88,0003,2004,800Annual production and sales level of big product is 62,525 units, and the annual production and sales level of little product is 251,900 units.a. Compute the approximate overhead cost per unit of big product under activity-based costing.b. Compute the approximate overhead cost per unit of little product under activity-based costing.
What will be an ideal response?