The Most Likely Method to Assign the Cost of an Assembly-Line

question 189

Multiple Choice

The most likely method to assign the cost of an assembly-line supervisor when the assembly line is the cost object is the:

• A)driver tracing method
• B)arbitration method
• C)allocation method
• D)direct tracing method

Know the role of the web in supporting learning activities.

Describe the process of information movement within an organization’s work procedures.

Detail different methods of accessing the Internet and evaluate them based on various criteria.

Understand the indirect method for preparing the operating activities section of the statement of cash flows.

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Definitions:

EBIT

Earnings Before Interest and Taxes, a measure of a company's profitability based purely on operational and business activities without considering interest and tax expenses.

Depreciation

An accounting method used to allocate the cost of a tangible asset over its useful life.

Net Capital Spending

The total expenditure on physical assets less any asset sales, reflecting how much a company is investing in its physical assets.

CCA Rate

The annual depreciation rate used under the Canadian tax system to calculate depreciation expense for tax purposes on a depreciable asset.