Case 5-2 Cade's Grandmother Has Never Owned a Computer

question 1

Multiple Choice

Case 5-2 Cade's grandmother has never owned a computer. Cade is trying to help her decide what type of computer to purchase for her own personal use. Cade's grandmother is leaning toward a Macintosh, but Cade points out that one disadvantage of the Macintosh is that ____.

• A) you must be a knowledgeable IT professional to use it
• B) it runs the Linux operating system
• C) you might have difficulty exchanging data between computers with the Windows operating system
• D) it doesn't come with software installed

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Definitions:

Standard Direct Labor

The predetermined cost of labor that is directly involved in the production of goods.

Standard Rate

A predetermined cost or price that is used for calculating variances, budgeting, or setting product prices.

Variable Overhead

The portion of overhead costs that varies directly with production volume.

Variable Overhead Rate Variance

The variance between the expected variable overhead according to standard cost and the actual variable overhead costs incurred.