Which of the following should be the main determinant for selection of the allocation method for long-term operational assets?
A. The method that is most convenient to compute.
B. The method that provides the best tax advantage.
C. The method that best matches the pattern of asset use.
D. The method that provides the greatest return to the stockholders.
Answer: C
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Oriental Reproductions, Inc. is a company that produces handmade carpets with oriental designs. The production records show that the monthly production has ranged from 1 to 5 carpets. The production levels and their respective probabilities are shown below. Production Per Month Probability 1 0.01 2 0.04 3 0.10 4 0.80 5 0.05 The standard deviation for the production is
A. 4.32. B. 3.74. C. 0.374. D. 0.612.
In his new employee orientation training, Fabian heard Meredith, his new accounting supervisor, explain, "At Williams Corporation, we do not use traditional cost accounting. Rather, we use activity-based costing, or ABC. According to ABC, we ________ costs according to what our employees do, rather than what the company spends."
A. allocate B. benchmark C. expend D. audit E. trade
Serial activities are those that:
A) Flow from one to the next in sequence. B) Have sequential numbers. C) Have the same numbers. D) Should be performed simultaneously.
Use Table 14.1 to answer the question. Kalil believes in buying in bulk, regardless of who the supplier is. Which supplier would result in the lowest total cost using this criterion?
A) Supplier A B) Supplier B C) Supplier C D) Supplier D