Telecom Uses Activity-Based Costing to Allocate All Manufacturing Conversion Costs

question 134

Multiple Choice

Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $40.00 of direct materials, includes 30 parts and requires 3 hours of machine time. Additional information follows: What is the cost of materials handling per phone?

• A)$42.00
• B)$ 6.00
• C)$15.00
• D)$30.00

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Definitions:

Benchmarking

A method of comparing business processes and performance metrics to industry bests or best practices from other companies.

Balanced Scorecard

A system for strategic planning and management utilized by organizations to convey their objectives and align and measure performance in accordance with strategic aims.

Strategic Alignment

The practice of ensuring that an organization's structure, capabilities, and resources are in line with its business strategy and objectives.

Human Resources Planning

The process of forecasting an organization's future human resources needs and developing strategies to fulfill those needs.