Lew Owns Five Activities, and He Elects Not to Group

question 52

Multiple Choice

Lew owns five activities, and he elects not to group them together as a single activity under the "appropriate economic unit" standard.During the year, he participates for 120 hours in Activity A, 150 hours in Activity B, 140 hours in Activity C, 110 hours in Activity D, and 100 hours in Activity E.Which of the following statements is correct?

• A)Activities A, B, C, D, and E are all significant participation activities.
• B)Lew is a material participant in Activities A, B, C, and D only.
• C)Lew is a material participant in Activities A, B, C, D, and E.
• D)None of these.

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Definitions:

Support Function

Activities or services that assist core business operations without being part of the direct production of goods or services.

Inventory Control

The supervision of supply, storage, and accessibility of items to ensure an adequate supply without excessive oversupply.

Information Technology

The employment of computers, storage systems, networking, and various physical components, infrastructure, and procedures for generating, processing, storing, safeguarding, and sharing electronic data in all its forms.

Warehouse Management System

A software application designed to support and optimize warehouse or distribution center management operations and processes.