Answer the Following Questions Using the Information Below

question 2

Multiple Choice

Answer the following questions using the information below:
Chess Woods Limited produces two products: wooden chess pieces and wooden inlaid chess boards.Under their traditional cost system using one cost driver (direct manufacturing labour hours) ,the cost of a set of wooden chess pieces is $325.00.An analysis of the activities and their costs revealed that three cost drivers would be used under a new ABC system.These cost drivers would be equipment usage,storage area for the material and types of wood used.The new cost of a set of chess pieces was determined to be $298.00 per set.
-Given this change in the cost structure:

• A)the costing results for chess pieces under the new system depend on the adequacy and quality of the estimated cost drivers and costs used by the system.
• B)chess pieces are definitely more accurately costed.
• C)chess will now have a lower sales price.
• D)chess pieces have benefited from the new system.

Understand the calculation and significance of basic earnings per share (EPS) and its relevance to investors.

Differentiate between measures of liquidity, profitability, and solvency, and their relevance to different stakeholders.

Analyze the impact of financial transactions on a company's financial position and performance.

Understand the concept of intracompany and intercompany comparisons for financial analysis.

---

Definitions:

Extinctions

The permanent and irreversible loss of species from Earth, often due to environmental changes, natural disasters, or human activities.

Desertification

The conversion of lush, fertile ground into desolate deserts, commonly triggered by lack of rain, cutting down forests, or faulty agricultural techniques.

Deforestation

The clearing of trees and forests, typically leading to habitat destruction and biodiversity loss.

Reduced Precipitation

A decrease in the amount of rainfall over a specific period, often impacting water supply and ecosystem health.