Shepherd and Ford,a CPA Firm Uses Activity-Based Costing to Determine

question 56

Multiple Choice

Shepherd and Ford,a CPA firm uses activity-based costing to determine the costs of its cases.Information about costs follow: The Harrison audit required 80 professional hours,20 of which were partner hours,and labor costs totaled $20,000.How much overhead was assigned to the Harrison audit?

• A)$12,400
• B)$14,000
• C)$6,000
• D)$13,600

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Definitions:

Herzberg

Refers to Frederick Herzberg, an American psychologist known for introducing the two-factor theory, also known as Herzberg's motivation-hygiene theory, in workplace management.

Behavior Modification

A therapeutic approach aimed at changing specific behaviors using various techniques such as reinforcement and punishment.

Skinner's Belief

Refers to B.F. Skinner's theory that behavior is determined by its consequences, reinforcements, or punishments, which lead to an increase or decrease in that behavior.

ERG Theory

A motivation theory proposed by Clayton Alderfer that categorizes human needs into three types: existence, relatedness, and growth, reshaping Maslow's hierarchy of needs.