Building an activity-based budget requires:
A) the activities within an organization to be identified.
B) the demand for each activity's output to be estimated.
C) the cost of resources required to produce this activity output to be assessed.
D) all of these.
D
You might also like to view...
Mullis Company sold merchandise on account to a customer for $625, terms n/30. The journal entry to record the collection on account would be:
A. Debit Cash of $625 and credit Sales $625. B. Debit Cash of $625 and credit Accounts Receivable $625. C. Debit Accounts Receivable $625 and credit Sales $625. D. Debit Sales $625 and credit Accounts Receivable $625. E. Debit Accounts Receivable $625 and credit Cash $625.
Items classified as operating expenses reflect management's judgment that the item is a cost of the core business
Indicate whether the statement is true or false
The ______ dimension of customer service is the ability of the supply chain to reduce the cycle time involved in fulfilling a customer order from the point an order was received.
A. time B. reliability C. communication D. convenience
Grandin Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: Variable costs per unit: Direct materials$97Fixed costs per year: Direct labor$1,056,000Fixed manufacturing overhead$2,288,000Fixed selling and administrative expenses$1,435,000 The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 44,000 units and sold 41,000 units. The company's only product is sold for $242 per unit. The company is considering using either super-variable costing or a variable costing system that assigns $24 of direct labor cost to each unit that is produced. Which of the following statements is true
regarding the net operating income in the first year? A. Variable costing net operating income exceeds super-variable costing net operating income by $156,000. B. Super-variable costing net operating income exceeds variable costing net operating income by $156,000. C. Variable costing net operating income exceeds super-variable costing net operating income by $72,000. D. Super-variable costing net operating income exceeds variable costing net operating income by $72,000.