In allocating fixed costs to products in activity-based costing,
a. direct labor hours should always be used as the allocation base.
b. a company should use the same allocation base that it uses for variable costs.
c. a cost driver that is not volume-related should be used.
d. machine hours should always be used.
C
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______ are not developed by management or explicitly agreed to by a group; they develop as members interact.
a. Rules b. Norms c. Polices d. Objectives
Which of the following statements is true of shareholders in a public stock company?
A. They are appointed by a board of directors to oversee the company's management. B. They are the centerpiece of corporate governance. C. They directly supervise and coordinate the manufacture of products and delivery of services. D. They are granted a charter of incorporation by the state and legally own company stock.
Pulse Plastics Inc. realized a decrease in net plant and equipment from last year's balance sheet to this year. If the firm did not sell or salvage any existing plant and equipment, which of the following statements MUST be true?
A) The firm made no additional plant and equipment purchases. B) The firm's plant and equipment is an income statement entry not a balance sheet entry. This is a trick question! C) Depreciation expense must exceed the addition to accumulated retained earnings. D) Depreciation expense exceeded the value of new plant and equipment purchases.
Most values of a standard normal distribution lie between:
a. 0 and 1 b. -3 and 3 c. 0 and 3 d. minus infinity and plus infinity