Category Specialists Are Sometimes Called Category Killers Because They

question 56

Multiple Choice

Category specialists are sometimes called category killers because they:

• A) can destroy a category of merchandise for other retailers.
• B) are located at stand-alone sites.
• C) have a broad merchandise mix and shallow assortment.
• D) are often located in dying shopping malls.
• E) carry mainly technologically obsolete merchandise.

Understand the principles of activity-based costing (ABC) and how it allocates manufacturing overhead to products.

Calculate the percentage of total overhead costs assigned to specific products using ABC data.

Apply activity rates to determine the cost allocation for different activity cost pools.

Interpret data from ABC systems to determine product costs.

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Definitions:

Relative Frequencies

The ratio of the number of times a particular value occurs to the total number of observations, often expressed as a percentage.

Histogram

A graphical representation of the distribution of numerical data, displayed as bars representing the frequency of data within certain ranges.

Histogram

A graphical representation of the distribution of numerical data, showing the number of data points that fall within each of a series of specified ranges.

Histogram

A graphical display of data using bars of different heights, where each bar groups numbers into ranges and taller bars show that more data falls in that range.