Briefly discuss the issue of choosing an activity measure for setting overhead rates.
What will be an ideal response?
The activity measure chosen should be one that moves proportionately with variable overhead. The most traditional measures have been direct labor hours and direct labor cost. Labor hours are becoming less relevant as an activity measure because of the impact of technology, and are being replaced by machine hours, robotic hours, or process time which tie into the more automated manufacturing processes of today. Labor cost and other dollar-based measures have a different set of problems. In particular, they are impacted by changes in the price level, and therefore, subject to more fluctuation.
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The personality trait of ________-taking is the tendency to imagine yourself in the other person's position and entertain their point of view.
Fill in the blank(s) with the appropriate word(s).
Which of the following channels is the best one to use when notifying employees of impending layoffs?
A. one-to-one conversations B. group meetings C. e-mail D. intranet
If gun control legislation were passed to reduce the number of homicides, which of the following graphs would best indicate that the legislation might be producing the intended effect?
Answer the following statements true (T) or false (F)
1. Assets are either financed through liabilities or equity. 2. The accrual accounting method registers revenues billed when the actual cash is received; and registers expenses as incurred (accrued) but not necessarily as they are paid. 3. The balance sheet allows venture owners to assess how healthy the business is at a point in time. 4. Assets are defined as the tangible property that the venture owns and has accounting value. 5. Current assets represent the most liquid assets of a venture, meaning they can more easily be turned into cash.