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Colt1911 [192]
3 years ago
5

Which of the following statements about cost drivers in ABC systems is FALSE? 1. cost driver for a cost pool should have a cause

and effect relationship to the costs in the pool 2. the cost drivers should be duration drivers 3. 100% correlation between the cost driver activity and the variation in the cost is not necessary 4. the cost driver activities can be quantified
Business
1 answer:
Lisa [10]3 years ago
4 0

Answer:

2. the cost drivers should be duration drivers

Explanation:

There are two types of cost drivers, transaction drivers and duration drivers:

  • transaction drivers are calculated by determining how many times did an activity occur, e.g. how many machine setups were carried out.
  • duration drivers are calculated based on the time it takes for an activity to occur, e.g. how many machine hours were sued to produce certain product.

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When a company makes marketing decisions by considering consumers' wants and interests, the company's requirements, and society'
Vinil7 [7]

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Option B: Societal

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stakeholders include those affected by the result of the project, but not those affected by the process of performing the projec
koban [17]

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3 0
1 year ago
Recording Issuing of Materials Materials issued for the current month are as follows: Requisition No. Material Job No. Amount 94
babymother [125]

Answer:

Work in process = $72,220

Factory Overhead = $1,098

Explanation:

DATA

No.      Material     Job No.        Amount

945     Fiberglass     78           $20,240

946       Plastic         93             $9,890

947      Glue            Indirect        $1,098

948     Wood              99           $3,622

949     Aluminium      108         $38,468

Required:  Amount of materials transferred to Work in Process and Factory Overhead?

Solution

Work in process = sum of all direct material cost

Work in process = $20,240 + $9.890 + $3,622 + $38,468 = $72,220

Factory Overhead = sum of all indirect material cost

Factory Overhead = $1,098

6 0
3 years ago
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