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Author Question: Canton's Corp. manufactures two sizes of ceramic paperweights, regular and jumbo. The following ... (Read 217 times)

Lisaclaire

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on: Mar 6, 2021
Canton's Corp. manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their expectations for the planning period:

Cost PoolOverhead CostsActivity-cost driver
Materials handling$43,00098,000 orders
Machine maintenance$400,00015,000 maintenance hours
Setups$269,63045,700 setups
Inspections$144,84021,300 inspections
Total support costs$857,470



Expected direct costs amounts to $9,130,000 for the period. Support cost requirements of both products are substantially different from one another. Canton uses an ABC costing system.

Which of the following statements is true of implementing an ABC system?
◦ Managers should never compromise on the cause-and-effect relationship of cost drivers and costs.
◦ The three guidelines for refining costing systems should be ignored while implementing an ABC costing system.
◦ The heterogeneous cost pools give managers greater confidence in the activity and product cost numbers from the ABC system.
◦ Identifying the cost-allocation bases defines the number of activity pools into which costs must be grouped in an ABC system.
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by Lisaclaire on Mar 6, 2021

jessofishing

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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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Lisaclaire

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

amynguyen1221

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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