Adam Repairs Power Lines for the Egret Utilities Company

question 70

Multiple Choice

Adam repairs power lines for the Egret Utilities Company.He is generally working on a power line during the lunch hour.He must eat when and where he can and still get his work done.He usually purchases something at a convenience store and eats in his truck.Egret reimburses Adam for the cost of his meals.

• A)Adam must include the reimbursement in his gross income.
• B)Adam can exclude the reimbursement from his gross income since the meals are provided for the convenience of the employer.
• C)Adam can exclude the reimbursement from his gross income because he eats the meals on the employer's business premises (the truck).
• D)Adam may exclude from his gross income the difference between what he paid for the meals and what it would have cost him to eat at home.
• E)None of these.

Calculate the full cost of a product using activity-based costing (ABC).

Identify and calculate the cost drivers in activity-based costing.

Distinguish between different levels of cost (unit-level, batch-level, product-level, capacity-sustaining).

Evaluate the efficiency and benefits of adopting an ABC system over traditional costing methods.