-Refer to Figure 8

question 44

Multiple Choice

-Refer to Figure 8.6.The total fixed costs for Cyndy's Floral Arrangements are $1,000.If Cyndy's Floral Arrangements produces 200 silk flower arrangements,the average fixed costs are:

• A)$.20.
• B)$5.
• C)$20.
• D)$200.

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Definitions:

Traditional Costing System

A costing methodology that allocates overhead costs to products based on a predetermined overhead rate, often using a single cost driver.

Overhead Cost Per Unit

The allocation of overhead costs to individual units of product, giving a full cost picture of each unit produced.

Product-Level Activity

Activities and costs incurred for a specific product, regardless of the number of units or batches produced.

Testing Prototype

The process of evaluating the initial example of a product to assess its functionality, design, and performance before mass production.