Examlex

Solved

Premium Company Provides the Following ABC Costing Information The Above Activities Are Used by Departments a and B

question 154

Multiple Choice

Premium Company provides the following ABC costing information:
 Activities  Total Costs  Activity-cost drivers  Account inquiry $200,00010,000 hours  Account billing $140,0004,000,000 lines  Account verificationaccounts $75,00040,000 accounts  Correspondence letters $25,0004,000 letters  Total costs $440,000\begin{array} { l r c } \text { Activities } & \text { Total Costs } & \text { Activity-cost drivers } \\\text { Account inquiry } & \$ 200,000 & 10,000 \text { hours } \\\text { Account billing } & \$ 140,000 & 4,000,000 \text { lines } \\\text { Account verificationaccounts } & \$ 75,000 & 40,000 \text { accounts } \\\text { Correspondence letters } & \$ 25,000 & 4,000 \text { letters } \\\text { Total costs } & \$ 440,000 &\end{array} The above activities are used by Departments A and B as follows:
 Department A Department B Account inquiry hours 2,500 hours 4,000 hours  Account billing lines 400,000 lines 250,000 lines  Account verification accounts 10,000 accounts 8,000 accounts  Correspondence letters 1,200 letters 1,600 letters \begin{array} { l c c } & \text { Department } \mathrm { A } & \text { Department } \mathrm { B } \\\text { Account inquiry hours } & 2,500 \text { hours } & 4,000 \text { hours } \\\text { Account billing lines } & 400,000 \text { lines } & 250,000 \text { lines } \\\text { Account verification accounts } & 10,000 \text { accounts } & 8,000 \text { accounts } \\\text { Correspondence letters } & 1,200 \text { letters } & 1,600 \text { letters }\end{array}
-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.

Related Questions