Beartowne Enterprises Uses an Activity-Based Costing System to Assign Costs

question 243

Multiple Choice

Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts division. The following units were produced in December with the following information:
Total unit cost for Part 002 is closest to (rounded) :

• A)$5.36
• B)$5.70.
• C)$9.37.
• D)$3.64.

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Definitions:

Market To Book Value

A financial ratio used to compare a company's current market price to its book value, indicating how much shareholders are paying for the net assets of a company.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a firm uses its equity to generate profit.

Leverage Ratio

The leverage ratio is a financial metric indicating the level of debt used by a business to finance its assets, often used to assess financial risk.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.