Discuss how the shift from labor intensive manufacturing to automation has affected product costing
When companies were more labor intensive, overhead costs were a smaller proportion of total product cost, therefore, allocating overhead based on a volume-based cost driver such as direct labor hours was easier and often effective. With the shift to automation, overhead costs have grown larger in proportion to total product costs and, as such, using a volume-based cost driver like direct labor hours may not be the best way to allocate overhead to products. Activity-based costing (ABC) strives to allocate overhead to those activities that drive overhead costs.
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Which of the following is likely to lead to a recession according to Keynesian economists?
A. An decrease in money supply B. An increase in the price of oil C. A decrease in the rate of inflation D. A fall in spending by consumers
Which of the following statements with regard to large stock dividends is true?
a. As a result of the stock dividend, retained earnings is reduced by the par value of the stock issued. b. Retained earnings is reduced by the market value of the stock issued in the stock dividend. c. If the market price of the stock before a 50% stock dividend is $30, after the stock dividend it will be $45. d. As the result of a 50% stock dividend, a stockholder who had previously held 20 shares will then hold 40 shares.
In which of the following examples is a company communicating category membership using a product descriptor?
A) Use Zipex for quick and thorough cleaning. B) Barry's Oats, when you want nutrition and flavor. C) Clarity offers you the best prices for the best quality. D) Choose Grissom's for an unparalleled shopping experience. E) Chloe: All you need for a beautiful you.
________ are designations placed in the left-hand column of a table
A) Leaders B) Stubs C) Footnotes D) Headings E) Brackets