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Author Question: Johnson Superior Products Inc. produces hospital equipment and the setup requirements vary from ... (Read 87 times)

Brittanyd9008

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on: Mar 6, 2021
Johnson Superior Products Inc. produces hospital equipment and the setup requirements vary from product to product. Johnson produces its products based on customer orders and uses ABC costing. In one of its indirect cost pools, setup costs and distribution costs are pooled together. Costs in this pool are allocated using number of customer orders for the easiness of costing operations. Based on the information provided, which of the following arguments is valid?
◦ Johnson has clearly failed to identify as many direct costs as is economically feasible.
◦ All costs in a homogeneous cost pool have the same or a similar cause-and-effect relationship with the single cost driver that is used as the cost-allocation base for Johnson.
◦ Johnson has unnecessarily wasted resources by classifying setup and distribution costs as they could have been considered as direct costs.
◦ Johnson has failed to use the correct cost driver as the cost-allocation base for setup costs.
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by Brittanyd9008 on Mar 6, 2021

tdewitt

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Brittanyd9008

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

duy1981999

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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