What are some of the problems which the use of Common Costs raises for Cost of Service Pricing, particularly the Average Cost approach?
a. Rates based upon average or fully allocated cost makes it necessary to apportion common costs by some arbitrary means.
b. Motor carriers are structured such as to make allocation extremely difficult.
c. Rail carriers have difficulty defining their common costs as they have wide spread geographic operations
d. All transport firms have significant difficulty with cost concepts due the very nature of their operations
A
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The “you” attitude ______.
A. adapts the message to the reader B. influences the format of the message C. subordinates negative information D. all of these
In accounting for depreciation in not-for-profit organizations:
a. depreciation directly reduces the asset account instead of using an accumulated depreciation account. b. certain assets are not subject to depreciation if they have value worth preserving in perpetuity and the organization has the ability to preserve the asset. c. the straight-line depreciation method is required. d. depreciation is required for all assets.
Explain the difference between financial objectives and strategic objectives. Give examples of each.
What will be an ideal response?
Abburi Company's manufacturing overhead is 55% of its total conversion costs. If direct labor is $45,900 and if direct materials are $27,200, the manufacturing overhead is:
A. $89,344 B. $33,244 C. $37,555 D. $56,100