Refer to Fact Pattern 18-1

question 56

Multiple Choice

Refer to Fact Pattern 18-1.To successfully defend itself in Fay's suit,GCC must show that Hank's statement was

• A)a legitimate,nondiscriminatory reason for Fay's discharge.
• B)not Fay's feeling about pranks at GCC.
• C)only a pretext for Fay's dis?charge.
• D)unofficial GCC policy.

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Definitions:

Traditional Costing

A costing method used for expense allocation in which the cost of products is based on the amount of manufacturing-related resources they consume, without differentiating between fixed and variable costs.

Activity-Based Costing

A costing method that identifies the activities in an organization and assigns the cost of each activity according to the actual consumption by each.

Manufacturing Overhead

includes all manufacturing costs that are not directly related to the production of goods, such as factory rent, utilities, and maintenance expenses.

Unit Product Cost

The cumulative expense of manufacturing a single product unit, encompassing direct materials, direct labor, and overhead costs related to production.