What is meant by the term "activity" in activity-based costing (ABC)? How are costs allocated in ABC?
An activity is a procedure or process that causes work to be accomplished. Activities consume resources (incur costs). In ABC, overhead costs are allocated to the activities that drive those costs. Depending on the type of cost, the costs allocated to a particular activity will eventually be allocated to products.
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Toss, a chain of sports equipment retailers, plans to invest in a retail operation in a foreign country. Which of the following categories of investments does this belong to?
A. Portfolio investment B. Philatelic investment C. Direct investment D. Alternative investment E. Inventory investment
If convertible bonds are dilutive, the interest expense added back to the numerator in calculating diluted earnings per share is
a. net of tax, and includes discount and premium amortization. b. net of tax, but does not include discount and premium amortization. c. not net of tax, but includes discount and premium amortization. d. not net of tax, and does not include discount or premium amortization.
Sam believes that corporations should focus on business and that the government should pay the associated social cost with the money generated as tax. Which of the following schools of social responsibility is best associated with Sam's beliefs?
A) profit-oriented B) managerial C) institutional D) regulation
International law is a body of law that governs relations between and among citizens, not countries
a. True b. False Indicate whether the statement is true or false