question 154
Multiple Choice
Premium Company provides the following ABC costing information:
Activities Account inquiry Account billing Account verificationaccounts Correspondence letters Total costs Total Costs $200,000$140,000$75,000$25,000$440,000 Activity-cost drivers 10,000 hours 4,000,000 lines 40,000 accounts 4,000 letters The above activities are used by Departments A and B as follows:
Account inquiry hours Account billing lines Account verification accounts Correspondence letters Department A2,500 hours 400,000 lines 10,000 accounts 1,200 letters Department B4,000 hours 250,000 lines 8,000 accounts 1,600 letters
-How much of the account inquiry cost will be assigned to Department A?
Differentiate between short-run and long-run decision-making in purely competitive markets.
Recognize the conditions under which firms enter or exit the market.
Comprehend the relationship between price, average total cost, and marginal cost in long-run equilibrium.
Analyze the impact of consumer demand changes on market equilibrium in different types of industries.
Definitions:
Reaction
A method where reactants are converted into distinct substances known as products.
Organic Product(s)
Compounds containing carbon that are outcomes of chemical processes.
Reaction
An interaction among substances that results in the creation of new substances, each with unique chemical formulas and properties.
Organic Product(s)
Chemical compounds consisting primarily of carbon and hydrogen, which are the result of organic reactions.