Which of the following statement(s) regarding activity-based costing is (are) true?I. Use of activity-based costing improves cost tracing by using more cause-and-effect relationships to assign indirect costs to activity centers.II. An activity-based system is characterized by multiple cost pools and multiple volume and activity cost drivers.III. Activity-based costing can cause distortion of cost, assigning too much cost to some products and too little to others.
A. II and III
B. I and III
C. I and II
D. III only
Answer: C
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Keegan, the human resource manager at R&S Inc., is advising the company's business executives that paying more for labor than competitors can support the company's strategy. Under what conditions might Keegan's idea be most valid?
A. R&S pays more to attract top talent, applying employees' knowledge to be more innovative than competitors. B. R&S hopes other companies will eventually match R&S's pay scale. C. Labor costs are a large part of R&S's total costs. D. R&S intends to charge more than competitors for the same kinds of products. E. R&S is developing a low-price strategy that will generate more sales.
A recent survey found that 79 percent of Internet and e-commerce companies take absolutely no social responsibility. Even more worrying is the finding that 75 percent of these Internet companies justify this omission on the grounds that they don't have any environmental or social impacts, while 55 percent said they didn't have time to think about these issues, and 50 percent said they didn't have the expertise to address them. Would these Internet-based companies benefit from acting more socially responsible? Explain your answer.
What will be an ideal response?
Klaus bought a December E-mini Dow contract at 17,750. On the December delivery date, the Dow closed at 18,035. Klaus' profit or loss was
A) $1,425. B) $180,350. C) $28,500. D) $285.
How might team meetings proceed with an overly cohesive team?
A. Meetings might start with excessive personal discussion and struggle to efficiently complete meeting tasks. B. Meetings would be terse and get quickly to the point. C. Meetings might be fairly slow-moving and quiet as members would be reluctant to share information. D. Meetings would happen infrequently, so the team members could minimize personal contact. E. Meetings would have a good mix of personal interaction and task completion.