Parrish Company Parrish Company Uses Activity-Based Costing

question 20

Multiple Choice

Parrish Company Parrish Company uses activity-based costing. The company produces two products: IPods and MP3 players. The annual production and sales volume of IPods is 8,000 units and of MP3 players is 6,000 units. There are three activity cost pools with the following expected activities and estimated total costs:
Refer to Parrish Company. Using ABC, the cost per unit of MP3 players is approximately:

• A) $ 2.40
• B) $ 3.90
• C) $12.00
• D) $15.90

Identify the conditions under which an advertisement constitutes an offer or an invitation to treat.

Recognize the role of consideration and intention in establishing a legal relationship.

Distinguish between unilateral and bilateral contracts.

Analyze the effect of communication modes on the validity of contract acceptance and revocation.

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Definitions:

Interest Rate Swap

A financial derivative contract in which two parties agree to exchange future interest rate payments, typically one fixed-rate and one variable-rate.

Fair Value

A financial term referring to the estimated market value of an asset, based on current market prices.

Available For Sale

A classification for financial assets indicating that they are neither held for trading purposes nor intended to be held to maturity, implying they can be sold to meet liquidity needs or strategic goals.

Idle Funds

Money that is not currently invested or used in transactions, potentially earning no interest or profit.