Provide an Appropriate Response

question 95

Essay

Provide an appropriate response.
-The lengths, in kilometers, of the worldʹs largest subway systems are listed below. Construct a Pareto chart for
the data. $$\begin{array} { l | c } \text { City } & \text { Length } \\\hline \text { Moscow } & 340 \\\text { Paris } & 211 \\\text { London } & 415 \\\text { Tokyo } & 281 \\\text { New York City } & 371\end{array}$$

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs (direct labor, materials, and overhead) in the cost of a product.

Variable Costing

A bookkeeping approach that incorporates just the variable costs of production such as direct materials, direct labor, and variable manufacturing overhead into the costs of products.

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) divided by the number of units produced.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable overhead) in product cost calculations, excluding fixed manufacturing overhead.