Activity-Based Costing Data Is Available for Various Activities Relating to Highway

question 32

Essay

Activity-based costing data is available for various activities relating to highway signage in Pinconning City.The activities include: cut brush,hand-letter and silk-screen signs,hang banners,install signs,relocate or remove signs,repair and replace signs,apply sign face,and installation.The specific components of the costs for each activity are personnel costs,direct material costs,overhead costs,and stock costs.Accomplishments are measured in terms of number of hours or signs for each of the activities.How does this method of accumulating costs compare with a typical cost accounting system that allocates indirect costs on a predetermined overhead rate basis? What can you learn from an activity based system that is not provided by a conventional costing system?

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Definitions:

Modus Ponens (MP)

A form of logical argument where if a conditional statement ("if P, then Q") is accepted, and the antecedent (P) is affirmed, the consequent (Q) must also be affirmed.

Proof 1

A logical or mathematical demonstration showing that a specific statement or theorem is true, based on accepted axioms and inference rules.

Proof 2

An alternative term generally meaning evidence or argument establishing a fact or the truth of a statement.

Demonstrations

organized activities by a group of people to show their protest, or support for, or against a cause.