Answer:
D) Johnson has failed to use the correct cost driver as the cost-allocation base for setup costs.
Explanation:
One of the main disadvantages of ABC costing method is that it is very hard and expensive to implement, and sometimes you cannot allocate all overhead costs to specific cost drivers. That is what happened here with Johnson's costing method, they combined two cost drivers and allocated resources using the number customer orders which is not a valid base, e.g. one single large order represents higher costs than 10 small orders.
ABC costing is not accepted by US GAAP due to its limitations or how hard it is to apply correctly, but it is a very useful information source for making decisions. The problem is, if gathering the information is worth the effort and extra cost of ABC?
They do MRI, CT, nuclear medicine, Ultrasound, and X-ray imaging.
Answer: Option a
Explanation: In simple words, organisational climate refers to the system of beliefs and values that the employees working within perceives from the organisational culture and act in the workplace.
The organisational climate directly affects the performance of the employees as it determines how much trust and harmony different employees have with each other.
An organisation having healthy climate succeeds to provide their employees a proper and satisfied work environment to perform their job.
