A number of costs and measures of activity are listed below. Cost DescriptionPossible Measure of Activity1.Salary of production manager at a surfboard manufacturerSurfboards produced2.Cost of solder used in making computersComputers produced3.Cost of dough used at a pizza shopPizzas cooked4.Janitorial wages at a surfboard manufacturerSurfboards produced5.Salary of the controller at a hospitalNumber of patients6.Cost of sales at an electronics storeDollar sales7.Cost of testing materials used in a medical labTests run8.Cost of heating an electronics storeDollar sales9.Cost of electricity for production equipment at a surfboard manufacturerSurfboards produced10.Depreciation on shelving at a book storeDollar salesRequired:For each item above, indicate whether the cost is MAINLY fixed or
variable with respect to the possible measure of activity listed next to it.
What will be an ideal response?
1. Salary of production manager at a surfboard manufacturer; Surfboards produced; Fixed
2. Cost of solder used in making computers; Computers produced; Variable
3. Cost of dough used at a pizza shop; Pizzas cooked; Variable
4. Janitorial wages at a surfboard manufacturer; Surfboards produced; Fixed
5. Salary of the controller at a hospital; Number of patients; Fixed
6. Cost of sales at an electronics store; Dollar sales; Variable
7. Cost of testing materials used in a medical lab; Tests run; Variable
8. Cost of heating an electronics store; Dollar sales; Fixed
9. Cost of electricity for production equipment at a surfboard manufacturer; Surfboards produced; Variable
10. Depreciation on shelving at a book store; Dollar sales; Fixed
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A. first aid clause. B. employer clause. C. employee clause. D. national consensus clause. E. general duty clause.
Non-financial performance measures (NFPMs) are better than financial measures in that NFPMs
a. provide a better indication of customer satisfaction. b. may better predict the direction of the future cash flows. c. directly measure how well an organization does those things that create shareholder value. d. All of the above.
Studies show that __________ of night-shift workers report falling asleep at least once a week while on the job.
A. 10 to 30 percent B. 30 to 50 percent C. 50 to 70 percent D. 70 to 90 percent
If the predetermined overhead rate is based on the estimated level of activity for the current period, then products will be charged only for the capacity that they use and will not be charged for the capacity they don't use.
Answer the following statement true (T) or false (F)