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bearhunter [10]
3 years ago
6

Which is NOT true of the various methods of allocating service department costs?

Business
1 answer:
alexandr1967 [171]3 years ago
4 0

Answer:

The statement which is NOT true of the various methods of allocating service department costs is:

b. The choice of method affects the optimal allocation of resources

Explanation:

The allocation method used by an organization does not affect whether the organization's resources are allocated optimally or not.  After all, what is at stake is not the allocation of resources, but the allocation of consumed resources.  An organization is free in making its choice of method.  The basis for choosing an allocation method is to ensure that costs are allocated optimally and not resources.

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Knowledge management is most popular among businesses in
Bingel [31]
Knowledge management is the the way how knowledge is captured, organized, distributed and effectively used. It is a whole process of managing knowledge that is very important for the success of the business because it builds learning organizations by making learning routine, facilitates decision-making capabilities and stimulates cultural change and innovation. It should be part of every type of business. However, KM is mos popular among business in the business administration, management, health, information systems and services.
7 0
3 years ago
The College Bookstore sells a unique calculator to college students. The demand for this calculator has a normal distribution wi
Strike441 [17]

Answer:

Option (A) is correct.

Explanation:

Given that,

Mean daily demand, M = 20 calculators per day

Standard deviation, SD = 4 calculators per day

Lead time for this calculator, L = 9 days

z-critical value (for 95% in-stock probability) = 1.65 (From z tables)

Normal consumption during lead-time:

= Mean daily demand × Lead time

= 20 × 9

= 180 units of calculator

Safety Stock = z value × SD × L^(0.5)

                     = 1.65 × 4 × (9)^(0.5)

                     = 1.65 × 4 × 3

                     = 19.8 units

Reorder Point = Normal consumption during lead-time + Safety Stock

                        = 180 units  + 19.8 units

                        = 199.8 or 200 units (Approx)

5 0
3 years ago
Boise Timber Co. computes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixe
JulsSmile [24]

Answer:

285,000 units

Explanation:

The computation of the cash break-even point of sales units is shown below:

Cash break-even point = (Fixed cost - depreciation) ÷ (contribution margin per unit)

where,

Fixed cost = $7,600,000

Depreciation = $7,600,000 × 0.25% = $1,900,000

And, the contribution margin per unit is $20

So, the cash break-even point of sales units is

= ($7,600,000 - $1,900,000) ÷ ($20)

= 285,000 units

8 0
3 years ago
What basically compares what an individual owes compared with how much they earn monthly?
STALIN [3.7K]

Answer:

C. Debt to Income Ratio

Explanation:

The debt to income ratio (DTI)provides a picture of the level of debts of a borrower. The DTI is usually expressed as a percentage of gross income. A high debt to income ratio indicates a person spends a high percentage of income on paying debts.

Lenders use the debt to income ratio to assess a borrower's ability to repay debts. Individuals with low DTI are preferred to those with a high one.

3 0
3 years ago
Ted's Manufacturing makes two products, B and C. They each take 2 direct labor hours and 2 machine hours to produce. A batch of
Delvig [45]

Answer:

a.

Explanation:

Based on the scenario being described within the question it can be said that the statement that is most likely true is that the product cost of product B will be higher under ABC than under traditional costing. This is because Activity-based costing (ABC) bases their overhead costs on the actual consumption by each while traditional costs  overhead is applied based on the amount of machine hours consumed. Therefore since product B is characterized as having lots of consumption then it's product cost will be higher under ABC costing.

3 0
3 years ago
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