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

question 78

Multiple Choice

(Appendix 7A) Ploof 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 "unused capacity in number of employees" would be closest to:

• A) 20.00 employees
• B) 2.08 employees
• C) 17.92 employees
• D) (17.92) employees

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Definitions:

Differentiation Value

Refers to the unique benefits or characteristics of a product or service that set it apart from competitors in the eyes of customers.

Value-based Pricing

A pricing strategy where the price of a product or service is set based on the perceived or estimated value it provides to customers, rather than its cost of production.

Drill Press

A drill press is a machine tool used for drilling holes in various materials, offering precision and stability that handheld drills might not provide.

Operating Cost

Expenses associated with the day-to-day functioning of a business, such as rent, utilities, and payroll, excluding manufacturing costs.