Answer: c) between Qa and Qb
Explanation:
From the exhibit, the lowest cost will be recorded when output is between Qa and Qb because these points represent the lowest costs per unit for Curves A and C and the lowest points where output can be produced. Output being produced at costs lower than this is therefore the lowest for the medium plant.
Answer:
D. have separate cost allocation rates for each activity identified by the company CORRECT
There will be activity cost pool which, will be distribute among the product using different cost driver like machien hours, direct labor hours or other.
Explanation:
A. have the same cost allocation system as plantwide and departmental cost allocation systems
NO If it was, then it would not have a different name
B. have no cost allocation rates for each activity identified by the company
If we don't have rates to distrubte cost then, the allocation will be arbitrary
C. have combined cost allocation rates for each activity identified by the company
each should have different base cost driver if not, then they aren't different and should be combined.
Answer:
<em>A. Cycle inventory exists to avoid customer service problems.</em>
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Explanation:
Cycle inventory is the part of inventory kept by a supplier, that shows the amount of inventory available to satisfy demand. Cycle inventory allows the supplier to keep track of his available inventory so as to remove the problem of not meeting customers demand, which can led to loss of customers. And also to reduce the problem of over-storage that can lead to additional holding charge.
Answer:
c.$36,750
Explanation:
If Bulls Division were dropped, then the total segment margin would be $147,000 and the total common cost would be $110,250, Then:
Operating income = Segment margin - Total cost
= $147,000 - $110,250
= $36,750
Therefore, The Operating income for Knickers Corporation as a whole if the Bulls division were dropped would be $36,750.
Answer:
A) Pilot strategy
Explanation:
Under a pilot strategy, before a new system is fully implemented, it is first subjected to testing under a given situation by using it in selective parts of the organization , to assess it's compatibility with the situation or if the system requires necessary changes.
This could also be a kind of experimentation to evaluate the feasibility of a system before deciding upon it's final implementation.
If the system under consideration matches the desired results, the organization proceeds with it's full implementation in the entire organization.
If not, necessary changes need to be incorporated in the system.
