Quality Checked Tax Service Has Expanded to Eight Offices in Different

question 135

True/False

Quality Checked Tax Service has expanded to eight offices in different parts of a major U.S. city. The owners began 30 years ago, when income tax forms and returns were processed manually and clients waited for weeks or even months for refunds to arrive. By using the latest available software and taking advantage of computerized capabilities, Quality Checked has stayed one step ahead of the national chains and other independent tax services in its market area. In fact, it’s become so successful that management has taken out a state license for selling insurance and investment products to clients, who will pay for these financial products out of their tax returns.
-During tax season,business becomes so hectic that Quality Checked hires temporary workers to prepare returns in their homes.Because these people are contract-labor workers rather than employees,this practice is a form of outsourcing.

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Definitions:

Overhead Applied

The portion of estimated overhead costs that is allocated to each unit of production or activity based on a predetermined rate.

Activity-Based Costing

An accounting method that assigns costs to products and services based on the resources they consume. This approach seeks to provide more accurate cost information by attributing overhead costs to specific activities.

Overhead Assigned

The allocation of indirect costs to specific products, services, or activities within a business.

Traditional Costing

A costing methodology that allocates manufacturing overhead based on volume-related measures such as labor hours or machine hours.