Read the Following Scenario and Answer the Question Below

question 21

Multiple Choice

Read the following scenario and answer the question below.
Many geologists have proposed naming the current time period of Earth's history the Anthropocene epoch. The rationale for doing so includes the fact that erosion rates and greenhouse gas levels in the atmosphere have increased rapidly over the past 300 years. Almost all environmental scientists agree that increases in greenhouse gases contribute to global climate change. Carbon dioxide, methane, nitrous oxide, ozone, hydrochlorofluorocarbons, and water vapor are the main culprits. Human activities, chief among them the tapping and burning of fossil fuels for energy, have significantly increased these "greenhouse gases" in our atmosphere in the last 300 years. With rising standards of living in developing countries, emissions of carbon dioxide and other greenhouse gases are expected to continue to rise. If unchecked, carbon dioxide levels will reach twice preindustrial levels by midcentury and double again by the end of the century. Computer models have shown that this rise alone could raise Earth's temperatures by 3 to 10 degrees Fahrenheit by 2100.
-Why does burning fossil fuels contribute to global warming?

• A)Burning fossil fuels creates increased plate tectonic movement.
• B)Burning fossil fuels removes water vapor from the atmosphere.
• C)New energy is created on Earth when fossil fuels are burned.
• D)Fossils, if left untouched, cool Earth.
• E)Carbon present in coal, oil, and natural gas becomes carbon dioxide when these fuels burn.

Understand the principles and objectives of activity-based management.

Differentiate between unit-level, batch-level, product-level, and facility-level activities.

Recognize how overhead costs are assigned using plantwide, departmental, and activity-based costing methods.

Identify the inaccuracies in overhead allocation with traditional costing methods and understand the superiority of activity-based costing for accuracy.

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Definitions:

Compensation Expense

The total cost that a company recognizes for paying its employees, including wages, salaries, and bonuses.

Diluted Earnings

An earnings calculation that accounts for all potential shares that could be issued, showing the lowest possible earnings per share.

Preferred Stock

A type of stock that provides a specific dividend that is paid before any dividends are paid to common stockholders, and that typically does not have voting rights.

Common Stock

A type of equity ownership in a corporation, representing a claim on a portion of the profits and assets, and giving voting rights in corporate decisions.