Question: A manager tells you that her company s cost accounting system
A manager tells you that her company's cost accounting system divides overhead into two pools: (1) inspect material and (2) assemble product. The inspect material pool is allocated on the basis of direct material dollars and the assemble product pool is allocated on the basis of direct labor costs. She says that her controller claims this is an activity-based cost system, but she is not convinced and has asked your opinion. How would you respond?
Answer to relevant QuestionsMunoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and Department T produces the tennis rackets. Munoz currently uses plantwide allocation to allocate its ...EZ-Seat, Inc., manufactures two types of reclining chairs, Standard and Ergo. Ergo provides support for the body through a complex set of sensors and requires great care in manufacturing to avoid damage to the material and ...Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant ...BK Consulting is a management consulting firm. Other than the senior leadership (who manage the firm, but do not actively consult), the managers and staff are billed to clients on an hourly basis. The workload varies quite a ...Joe's Pizzeria was the only delivery-based pizza chain serving a small college town for more than 20 years. Students are very price conscious, so although Joe's reputation centered on his special crust recipe, he emphasized ...
Post your question