Answer the Following Questions Using the Information Below

question 73

Multiple Choice

Answer the following questions using the information below:
Chess Woods Limited produces two products: wooden chess pieces and wooden inlaid chess boards. Under their traditional cost system using one cost driver (direct manufacturing labor hours) , the cost of a set of wooden chess pieces is $325.00. An analysis of the activities and their costs revealed that three cost drivers would be used under a new ABC system. These cost drivers would be equipment usage, storage area for the material, and type of woods used. The new cost of a set of chess pieces was determined to be $298.00 per set.
-Given this change in the cost structure ________.

• A) The costing results for chess pieces under the new system depend on the adequacy and quality of the estimated cost drivers and costs used by the system.
• B) Chess pieces have benefited from the new system.
• C) Chess pieces are definitely more accurately costed.
• D) Chess will now have a lower sales price.

Understand the importance and purposes of studying economics.

Comprehend the concept of opportunity cost and its relevance in decision-making.

Identify the reasons opportunity costs arise due to the scarcity of resources.

Calculate the opportunity cost of attending college considering various financial aspects.

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Definitions:

Bacteria

Single-celled microorganisms that can exist either as independent organisms or as parasites, which may cause diseases or can be beneficial.

Evisceration

The medical condition where internal organs protrude through a wound or surgical incision in the skin.

Dehiscence

The splitting open or rupture of a wound along surgical incision lines, often due to incomplete healing.

Internal Viscera

The internal organs of the body, especially those within the chest and abdomen, including the heart, lungs, liver, and others.