To Emphasize Just How Important the Savings from Plant Duplication

question 37

Multiple Choice

To emphasize just how important the savings from plant duplication are,a study of the chemical and refining industries indicated that the cost of technology transfer was lowered by ______ and ______ percent for the second and third startups,respectively.

• A) 75; 54
• B) 56; 37
• C) 49; 27
• D) 34; 19

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Definitions:

Activity-Based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption.

Supporting Assembly

Components or materials put together as part of a larger item or system in the manufacturing process.

Activity-Based Costing

An accounting technique that distributes indirect and overhead costs to distinct activities, offering a more accurate determination of product costs.

Total Cost

Represents the sum of all costs incurred in the production of goods or the provision of services.