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Case-Based Critical Thinking Questions
Case 1-2
Sam is a distributor of ceramics.He uses Excel 2010 to record his inventory and order forms.Sam's worksheet for his company's monthly orders needs to display summary information including total number of items ordered,and the amount of revenue generated from those orders.
-First Sam will add the number of orders.He chooses to use the ____ function from the AutoSum feature.
Overhead Absorption Rate
The rate at which indirect costs are allocated to produced goods or services.
ABC System
Activity-Based Costing; a method of assigning overhead and indirect costs to specific products or projects, based on their usage of activities.
Single-Base Allocation
A cost allocation method where overhead costs are distributed based on a single criterion or cost driver.
Cost Difference
The variance between the actual cost and the standard or expected cost of an item or activity.
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