What is the relation between the customer retention (CR) and average customer life (N)?
A) CR=1/N
B) CR=1+(1/N)
C) CR=N/2
D) CR=(N-1)/2
E) CR= 1-(1/N)
E
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Njombe Corporation manufactures a variety of products. In the past, Njombe has been using a traditional costing system in which the predetermined overhead rate was 150% of direct labor cost. Selling prices had been set by multiplying total product cost by 200%. Sensing that this system was distorting costs and selling prices, Njombe has decided to switch to an activity-based costing system for manufacturing overhead costs that uses the three activity cost pools listed below. Selling prices are still to be set at 200% of unit product cost under the new system. Information on these cost pools for next year are as follows: Activity Cost PoolActivity MeasureEstimated ActivityEstimated Overhead Cost?Machine SetupsNumber of setups400$150,000 ?Quality ControlNumber of
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Unethical behavior is a bar to financial success.
Answer the following statement true (T) or false (F)