Nichols' management is considering to implement ABC system because ________.
Nichols Inc. manufactures remote controls. Currently the company uses a plant-wide rate for allocating manufacturing overhead. The plant manager is considering switching-over to ABC costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows:
Activities Cost driver Allocation Rate
Material handling Number of parts 2 per part
Assembly Labor hours 20 per hour
Inspection Time at inspection station 3 per minute
The current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of 200 per labor hour.
A) ABC system can be implemented cheaply
B) ABC system provides more accurate direct cost figures
C) ABC system is a highly refined costing system
D) ABC system requires minimal expertise to operate
Question 2
Systems that capture, store, manage, and control electronic document images are called ___________________ ___________.
Fill in the blank(s) with correct word
Overview of blood flow through vessels in a closed circulatory system.
The digestive system: functions of the small intestine and large intestine (colon)
Procedures for Diagnostic Tests Related to the Digestive System
A technician-made adapter used to test exhaust system back pressure.
Effects of the Autonomic Nervous System
Earth’s Climate System