Jefferson,Inc

question 19

Multiple Choice

Jefferson,Inc.produces two different products (Product 5 and Product Z) using two different activities: Machining,which uses machine hours as an activity driver,and Inspection,which uses number of batches as an activity driver.The cost of Machining is $500,000,while the cost of Inspection is $30,000.The activity drivers are used as follows: What proportion of Inspection activity is used by Product 5?

• A)25%
• B)33%
• C)67%
• D)75%

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Definitions:

Duty Of Obedience

The requirement for directors and officers of an organization to act in accordance with its goals and directives.

Clearly Stated

Expressed in a manner that leaves no doubt about the meaning or intentions.

Good Faith

The principle of honesty and sincerity in dealings, especially in fulfilling contractual obligations.

Gratuitous Agent

An individual who acts on behalf of another without receiving any compensation for his/her actions.