Which of the following is true of nominal partners?
A. They have an equal say in the management of the business.
B. They are held liable as full partners in some cases.
C. They are responsible for the day to day upkeep of the business.
D. They contribute financially to the partnership.
Answer: B. They are held liable as full partners in some cases.
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Can activity-based costing (ABC) be used by service companies? If so, is the implementation of an ABC system in a service company different than that of a manufacturing company?
A firm has fixed operating costs of $10,000, the sale price per unit of its product is $25, and its variable cost per unit is $15. The firm's operating breakeven point in units is ________ and its breakeven point in dollars is ________
A) 1,000; $6,250 B) 400; $10,000 C) 400; $25,000 D) 1,000; $25,000
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense-to three activity cost pools-Machining, Order Filling, and Other-based on resource consumption. Data to perform these allocations appear below:Overhead costs: Equipment depreciation$92,000Supervisory expense$4,000??Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools MachiningOrder FillingOtherEquipment depreciation0.600.200.20Supervisory expense0.300.200.50In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other
activity cost pool are not assigned to products.Activity: MHs (Machining)Orders (Order Filling)Product W14,200800Product M015,800200Total20,0001,000Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.Sales and Direct Cost Data: Product W1Product M0Sales (total)$236,500$262,000Direct materials (total)$90,900$123,900Direct labor (total)$110,400$76,100The activity rate for the Machining activity cost pool under activity-based costing is closest to: A. $4.80 per MH B. $2.82 per MH C. $1.50 per MH D. $2.76 per MH
The activity variance for revenue is favorable if the actual revenue for the period exceeds the revenue in the static planning budget.
Answer the following statement true (T) or false (F)