Answer the Following Questions Using the Information Below

question 102

Multiple Choice

Answer the following questions using the information below:
Gregory Enterprises has identified three cost pools to allocate overhead costs.The following estimates are provided for the coming year:
The accounting records show the Mossman Job consumed the following resources:

-When selling prices are based on costs assigned using the single cost driver, direct labour hours, then the Mossman job

• A)is fairly billed because resources are allocated uniformly to all jobs.
• B)is grossly under billed for the job, while other jobs will be unfairly over billed.
• C)may increase overall sales as other jobs will be cross-subsidized.
• D)will contribute too little to profits, and Gregory Enterprises will not want to accept additional work from the company.
• E)will likely seek to do business with competitors.

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Definitions:

Customers

Individuals or entities that purchase goods or services from a business, playing a key role in the company's success.

Conscious Marketing

Ethical marketing practices that consider the welfare of society and the environment in decision-making.

Stakeholders

Individuals or groups that have an interest in any decision or activity of a business, including employees, customers, suppliers, and investors.

Interdependence

A mutual reliance between two or more entities, where each is dependent on the other for success or survival.