-Refer to the Figure

question 18

Multiple Choice

-Refer to the figure.Under traditional costing methods,which product would have more overhead costs allocated?

• A)Product A,because it has the highest total cycle time
• B)Product B,because it has the highest individual cycle time in Moulding
• C)Product A,because the first two cycles are bottlenecks
• D)Product B,because the last two cycles are bottlenecks

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Definitions:

Required Production

The quantity of goods a business needs to produce in a specified period to meet sales forecasts and maintain desired inventory levels.

Merchandise Purchases Budget

A detailed plan used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period.

Budgeted Sales

The projected amount of sales, in units or revenue, a company expects to achieve during a specific period, often used for planning and performance evaluation purposes.

Merchandise Inventory

Represents the goods a company has in stock that are available for sale to customers.