Darryl Graduated with Honors from College

question 122

Multiple Choice

Darryl graduated with honors from college.However, he obtained his outstanding grades by cheating on every final exam with help from his best friend; Darryl actually has the talent of a C student.Nevertheless, he gets a job with a top accounting firm in Boston.The fact that he is hired illustrates a failure of

• A)comparable worth
• B)signaling and screening
• C)marginal productivity
• D)supply and demand
• E)specialization

---

Definitions:

Idle Capacity

The unused portion of a company's production or service potential, often resulting in inefficiencies and increased costs.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, aiming to provide more accurate product cost information.

Machine-Hours

A unit of measure representing the operating time of a machine, used in allocating costs to products based on machine usage.

First Stage Allocations

In managerial accounting, it refers to the process of allocating overhead costs initially to various departments or cost pools.