Booksellers of Bufluffia Is a Small, Independent Bookstore That Both

question 22

Multiple Choice

Booksellers of Bufluffia is a small, independent bookstore that both publishes and sells very specialized titles. They currently have about 50 clients; they publish and sell 30 different books at present. The company's management has asked you to create database tables to support their operations. Suppose the database includes four tables: clients, inventory, sales and sales / inventory. In which table(s) would you expect to see a field labeled "client ID?"

• A)Clients table only
• B)Sales table only
• C)Both A and B
• D)Neither A nor B

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Definitions:

Denominator Activity

The level of activity used to compute a predetermined overhead rate, representing the total amount of absorption base that is expected to be utilized.

Efficiency Variances

Refers to the differences between the actual and standard costs attributable to efficiency in using resources, often analyzed in labor and variable overhead.

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to individual units of production, based on a chosen activity base.

Denominator Level

In cost accounting, it refers to the standard quantity or activity used in calculating the predetermined overhead rate.