Canton Corp

question 129

Multiple Choice

Canton Corp.manufactures two sizes of ceramic paperweights,regular and jumbo.The following information applies to their expectations for the planning period:


Expected direct costs amounts to $942,000 for the period.Support cost requirements of both products are substantially different from one another.Canton uses an ABC costing system.
The setups activity-cost driver rate is ________.

• A)$6.10 per setup
• B)$5.80 per setup
• C)$4.15 per setup
• D)$15.50 per setup

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Definitions:

Developing Markets

Those markets in countries that are in the process of rapid industrialization, offering growth opportunities but also posing risks due to their emerging nature.

Omni-Channel

A multi-channel approach to sales that seeks to provide customers with a seamless shopping experience whether they are shopping online from a mobile device, a laptop, or in a brick-and-mortar store.

Supply Chain Networks

The interconnected systems and processes of organizations involved in producing and delivering products or services from suppliers to end customers.