Answer the Following Questions Using the Information Below

question 81

Multiple Choice

Answer the following questions using the information below:
Products S5 and CP8 each are assigned $100.00 in indirect costs by a traditional costing system. An activity analysis revealed that although production requirements are identical, S5 requires 45 minutes less setup time than CP8.
-According to an ABC system,S5 uses a disproportionately ________.

• A) smaller amount of unit-level costs
• B) larger amount of unit-level costs
• C) smaller amount of batch-level costs
• D) larger amount of batch-level costs

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Definitions:

Endowment Fund

A financial asset, in the form of donations, made to non-profit organizations that uses the generated income for a specific purpose.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounted cash flow analysis to assess the profitability of an investment.

Future Value

Future value is the value of a current asset at a specified date in the future based on an assumed rate of growth over time.

Interest Rate

The interest rate applied to a loan, frequently shown as an annual percentage of the loan's outstanding figure to the borrower.