(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:

Patents

Legal documents granting an inventor exclusive rights to produce, use, and sell an invention for a certain period of time.

Raw Materials Inventory

The total cost of all components and materials that are used in the production of a final product but have not yet been used in the manufacturing process.

Historical Cost

An accounting method where assets are listed and valued on the balance sheet at their original purchase price.

Current Cost

Current cost refers to the cost of purchasing an asset or replacing a liability at current market rates, as opposed to historical purchase prices.