Table 4-4 -Refer to Table 4-4. the Table Above Lists the Highest

question 401

Multiple Choice

Table 4-4

-Refer to Table 4-4. The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne. If the price of one of the bottles is $24 dollars,

• A) Curly will buy two bottles, Moe will buy one bottle and Larry will buy no bottles.
• B) Curly will receive $26 of consumer surplus from buying one bottle.
• C) Curly and Moe receive a total of $80 of consumer surplus from buying one bottle each. Larry will buy no bottles.
• D) Larry will receive $15 of consumer surplus since he will buy no bottles.

Calculate activity rates and allocate costs accurately under ABC.

Recognize the limitations and challenges of implementing ABC.

Understand the different types of activities (unit, batch, product, facility) within ABC.

Acknowledge the applicability and flexibility of ABC in both manufacturing and service industries.