Answer the Following Questions Using the Information Below

question 112

Multiple Choice

Answer the following questions using the information below:
Chess Woods Limited produces two products: wooden chess pieces and wooden inlaid chess boards. Under their traditional cost system using one cost driver (direct manufacturing labor hours) , the cost of a set of wooden chess pieces is $325.00. An analysis of the activities and their costs revealed that three cost drivers would be used under a new ABC system. These cost drivers would be equipment usage, storage area for the material, and type of woods used. The new cost of a set of chess pieces was determined to be $298.00 per set.
-The goal of a properly constructed ABC system is to ________.

• A) have the most accurate cost system
• B) identify more indirect costs
• C) develop the best cost system for an economically reasonable cost
• D) have separate allocation rates for each department

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Definitions:

DSM-IV-TR

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision, an older version of the manual that provides guidelines for diagnosing and treating mental disorders.

Gender Dysphoria

A psychological condition where an individual experiences discomfort or distress due to a mismatch between their gender identity and biological sex.

Paraphilic Disorders

These involve intense sexual interests or behaviors that deviate significantly from normative or socially accepted sexual preferences, causing distress or impaired functioning.

Sexual Dysfunctions

Disorders that prevent an individual from experiencing satisfaction from sexual activity.