Mattison Company Has Developed Cost Formulas for the Drivers of the Following

question 35

Multiple Choice

Mattison Company has developed cost formulas for the drivers of the following production activities: $$\begin{array} { l l r } { \text { Driver } } & \text { Activity } & \text { Fixed }& \text { Variable } \\\hline \text { Labor hours } & \text { Materials } & \$ 0&\$20\\\text { Labor hours } & \text { Labor } & 0 &10\\\text { Machine hours } & \text { Maintenance } & 10,000&8 \\\text { Machine hours } & \text { Machining } & 50,000&2 \\\text { Number of setups } & \text { Inspections } & 30,000&200 \\\text { Number of setups } & \text { Setups } & 0 &300\\\text { Number of purchase orders } & \text { Purchasing } & 75,000&3\end{array}$$ If the actual activity was 20 setups and the actual fixed cost for inspections was $28,000 and the variable cost for inspections was $5,000, the total variance for inspections is

Differentiate between characteristics of effective and ineffective sources of persuasive messages.

Recognize the impact of cultural differences on responses to social pressure.

Understand the conditions under which normative influence impacts social behavior.

Understand the components and functions of the open-economy macroeconomic model.

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Definitions:

Impairment Loss

A loss recognized in the financial statements when the carrying amount of an asset exceeds its recoverable amount.

Cost Model

An accounting approach that measures an asset based on its historical cost minus any accumulated depreciation and impairment losses.

Impairment

Reduction in the recoverable value of an asset below its carrying amount.