Answer the following statements true (T) or false (F)
1. Allen Manufacturing has three departments that differ significantly in their manufacturing processes. A single plantwide rate will give the company the best estimate of overhead costs.
2. Traditional costing provides more detailed information on costs of activities and the drivers of these costs than activity-based costing.
3. Activity-based costing uses a common allocation base for all activities.
4. In the first step in developing an activity-based costing system for a manufacturing company, the management team must determine the activities that incur the majority of the manufacturing overhead costs.
5. In the first step in developing an activity-based costing system, the management team must think about how each activity for a product or service might be improved or whether is it necessary at all.
1. FALSE
2. FALSE
3. FALSE
4. TRUE
5. TRUE
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Tanning Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $300,000 and credit sales are $1,000,000. An aging of accounts receivable shows that 5% will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment?
A) Bad Debts Expense 13,000Allowance for Doubtful Accounts 13,000 B) Bad Debts Expense 15,000Allowance for Doubtful Accounts 15,000 C) Bad Debts Expense 13,000Accounts Receivable 13,000 D) Bad Debts Expense 15,000Accounts Receivable 15,000
A firm has accounts receivable of $400,000 and net sales of $365,000 . Its collection period is 111 days
Indicate whether the statement is true or false
The finder of an abandoned property holds title against the whole world except the owner
Indicate whether the statement is true or false
As vice president of human resources at Lodge Corporation, Paul enjoys working alongside his peer vice presidents, largely because they all have different skills and all manage different parts of the organization, including research, engineering, production, construction, procurement, and finance. Lodge Corporation is a(n) ________ organization.
A. divisional B. functional C. matrix D. organic E. network