Blitzer Enterprises Has Identified Three Cost Pools and Three Corresponding

question 88

Multiple Choice

Blitzer Enterprises has identified three cost pools and three corresponding cost drivers to allocate overhead costs. The following estimates are provided for the coming year:

The accounting records show the Gergen Job consumed the following resources:

-Which method of allocation probably best estimates actual overhead costs used for Blitzer Enterprises? Why?

• A)Single direct labor-hours cost driver, because it is best to allocate total costs uniformly to individual jobs.
• B)Single direct labor-hours cost driver, because it is easiest to analyze and interpret.
• C)Three activity-cost drivers, because it best reflects the relative consumption of resources.
• D)Three activity-cost drivers,because product costs can be significantly cross-subsidized.

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Definitions:

Cliché Conversations

Dialogues that use overused expressions or ideas, resulting in unoriginal and predictable communication.

Gut-Level Communication

A form of interaction that originates from deep emotional and intuitive reactions rather than careful thought or analysis.

Dependency

A situation in which a person, system, or thing relies on another for support, functionality, or sustenance.

Gut-Level Communication

Communication that is deeply emotional and instinctive, rather than cerebral or meticulously thought out, often leading to more authentic interactions.