For Each Cost Pool Listed Select an Appropriate Allocation Base

question 1

Essay

For each cost pool listed select an appropriate allocation base from the list below. An allocation base may be used only once. Assume a manufacturing company.
Allocation bases for which the information system can provide data:
1.Number of employees per department
2.Employee wages and salaries per department
3.Number of sales orders
4.Hours of operation of each production department
5.Machine hours by department
6.Operations costs of each department
7.Hours of computer use per month per department
8.Number of units sold
Cost pools:
________a.Vice President of Finance's office expenses
________b.Computer operations used in conjunction with manufacturing
________c.Personnel Department
________d.Sales-order costs
________e.Energy costs

Understand the implications of lack of experience, expertise, and commitment on business operations and success.

Recognize the importance of succession planning in family businesses and its challenges.

Understand the basics of ladder logic programming and its components.

Interpret and apply Boolean logic to ladder logic designs.

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Definitions:

Short-Term Pricing

The strategy or approach to setting prices for goods or services with a focus on immediate or near-future objectives.

Absorption Costing

An accounting method that includes all manufacturing costs, both direct and indirect, in the cost of a product, thereby fully absorbing overhead.

Profit

The financial gain achieved when the revenue from sales or services exceeds the costs and expenses incurred in providing those sales or services.

Budgeted Fixed Overhead

The estimated amount of fixed costs that a business plans to incur over a certain period, usually for budgetary and planning purposes.