Figure 4-19 Attraction Corporation Produces Specially Machined Parts. the Parts Are Produced

question 49

Multiple Choice

Figure 4-19
Attraction Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing process. Each part is custom produced and requires special engineering design activity (based on customer specifications) . Once the design is completed, the equipment can be set up for batch production. Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed. Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting. In addition, there is a sustaining process with two activities: providing utilities (plant wide) and providing space. Costs have been assigned to each activity using direct tracing and resource drivers:
Activity drivers for each activity have been identified and their practical capacities listed:
The costs of facility-level activities are assigned using machine hours.
-Refer to 4-19. What is (are) the facility-level activity(ies) ?

• A) set-ups
• B) inspecting
• C) providing space
• D) both a and b

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Definitions:

Deemed Reasonable

Considered or judged to be fair, appropriate, or within acceptable limits according to prevailing standards or circumstances.

Act of Omission

A failure to perform an act or duty that one is obligated to do by law or promise.

Tax Return

A form filed with a government body, reporting income, expenses, and other pertinent tax information, used to calculate tax liability.

Mens Rea

A legal principle referring to the state of mind of a person who commits a crime, indicating intent or knowledge of wrongfulness.