Which of the following statements is true?
A. One of the lessons learned from activity-based costing (ABC) is that all costs are really a function of volume.
B. Direct cost allocations are required for the plantwide and department allocation methods.
C. A problem with activity-based costing (ABC) is that it requires more recordkeeping than other methods.
D. The primary purpose of the plantwide and department allocation methods is allocating direct costs to specific products.
Answer: C
You might also like to view...
Tomás, a sales associate in the furniture department of the Larkspur Department Store, reports to Carolina, the furniture department manager. This morning, Carolina asked Tomás to change the price tags on the desk chairs. While working on this task, David, the computer department manager, told Tomás that he wanted him to unload some computers. Tomás is confused about what to do because under the principle of unity of command,
A. employees should report to no more than one manager. B. Tomás will need to determine how he can multitask. C. employees can report to two managers, so Tomás needs to decide whose directions to follow. D. Tomás can refuse to do both tasks. E. Tomás needs to decide which manager has more power.
Accounting professionals should understand database systems for all of the following reasons except:
A. Accountants frequently help improve business and IT processes. B. Accountants typically manage organizations' operational databases. C. Accountants increasingly participate in creating internal control systems. D. Accountants have a strong understanding of risks, controls and business processes.
The feeling of stress associated with trying to navigate around a strange city, which can cause mental strain, and feelings of depression is termed ______ in the textbook.
A. collectivism B. naturalization C. culture shock D. conditioning
Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to a 11.2% rate of return on invested assets of $350,000. Fixed factory overhead cost $105,000 Fixed selling and administrative costs 35,000 Variable direct materials cost per unit 4.34 Variable direct
labor cost per unit 5.18 Variable factory overhead cost per unit .98 Variable selling and administrative cost per unit .70 The variable cost per unit for the production and sale of the company's product is: A) $14.00 B) $12.60 C) $ 9.80 D) $11.20