Which of the Following Is Not Required to Satisfy Fed

question 145

Multiple Choice

Which of the following is not required to satisfy Fed minimum reserve requirements?

• A)Commercial banks.
• B)Most credit unions.
• C)Pawn shops.
• D)Savings and loans.

Understand how overhead costs are allocated to products using activity-based costing.

Recognize the systematic shifting of costs between high-volume and low-volume products in an activity-based costing system.

Calculate unit product costs under activity-based costing.

Understand the purpose of overhead allocation and its implications on product costing.

---

Definitions:

Machine Hours

A measure of the time that a machine is operated during a specified period, used in calculating manufacturing costs.

Efficiency Variance

The difference between the actual and the standard amount of input (like labor or materials) needed to produce a certain amount of output, indicating the efficiency of resource use.

Variable Cost

Costs that change in proportion to the level of goods or services production, such as materials and direct labor.

Activity Range

Activity range refers to the span of levels of operational activity that a business can perform within, while maintaining efficiency and effectiveness in its processes or production.