Watson's Computer Company Uses ABC to Account for Its Manufacturing

question 29

Multiple Choice

Watson's Computer Company uses ABC to account for its manufacturing process.

Watson's Computer Company expects to produce 2,250 computers.Watson's Computer Company also expects to use 13,000 parts and have 20 setups.
The allocation rate for machine setups is

• A)$7.01.
• B)$1,500.
• C)$488.
• D)$765.

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Definitions:

B1C E-commerce

Business-to-Consumer electronic commerce, a model in which businesses sell goods, services, or information directly to consumers online.

B2B E-commerce

Business-to-business electronic commerce involves the online sale of products or services from one business to another.

B2C E-commerce

B2C E-commerce refers to the online selling of goods or services directly to consumers, bypassing traditional retail.

Cash Receipts Journal

A financial journal used to record all cash inflows, tracking receipts from sales, loans, investments, and other sources.