(Appendix 7A) Gendel Corporation Is Conducting a Time-Driven Activity-Based Costing

question 44

Multiple Choice

(Appendix 7A) Gendel Corporation is conducting a time-driven activity-based costing study in its Customer Service Department. The company has provided the following data to aid in that study:

-On the Capacity Analysis report in time-driven activity based costing,the "impact on expenses of matching capacity with demand" would be closest to:

• A) ($151,200)
• B) ($189,000)
• C) ($113,400)
• D) ($186,698)

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Definitions:

Demand

The quantity of a good or service consumers are willing and able to purchase at various prices during a given period.

Price

The amount of money expected, required, or given in payment for something, reflecting the value agreed upon by both buyer and seller.

Consumption

is the process by which goods and services are used by individuals or businesses, ultimately leading to the satisfaction of human wants or needs.

Broad Stock Market Index

A financial index that tracks the performance of a wide range of stocks, representing a large segment of the equity market.