Tom Magic Company Manufactures Various Kinds of Toys for Different

question 45

Multiple Choice

Tom Magic Company manufactures various kinds of toys for different age groups. The company's flagship product is Rx. The company currently requires 8.50 labor hours to manufacture per unit of Rx. The company believes that because of numerous small improvements in the process, it will require 0.10 labor-hours less and hence will only 8.40 labor-hours in the next quarter. It will require 8.35 and 8.25 labor-hours in third and fourth quarter. The company has adopted ________.

• A) activity based budgeting
• B) kaizen budgeting
• C) zero-based budgeting
• D) cost-based budgeting

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Definitions:

Ethanol

A simple alcohol with the chemical formula C2H5OH, commonly used as a solvent, in beverages, and as a fuel additive.

Increasing Acidity

A term referring to the trend or condition under which the acidity of substances increases, typically influenced by structural or environmental factors.

Acid-Base Pair

Two substances that differ only by the presence or absence of a hydrogen ion and can interconvert by the gain or loss of a proton.

Conjugate Base

The resulting species after a proton has been given up by an acid in a chemical reaction.