Because of Nike's Initial Failure to Anticipate the Backlash Against

question 37

Multiple Choice

Because of Nike's initial failure to anticipate the backlash against its outsourcing business model,some stakeholders will always associate this company with

• A)accounting fraud.
• B)air pollution.
• C)sweatshops.
• D)water pollution.

---

Definitions:

Cost Per Equivalent Unit

An accounting measure used in process costing that represents the cost incurred to produce an equivalent unit of production.

Step-Down Method

A cost allocation method used in costing multiple service departments where the cost of one service department is allocated to others and subsequently to production departments.

Cost Allocation

The process of identifying, aggregating, and assigning costs to cost objects, such as departments, products, or services.

Service Department

A department that does not directly engage in operating activities; rather, it provides services or assistance to the operating departments.