Nichols' management is considering to implement ABC system ...

[humphriesbr@me.com]

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

[abctaiwan]

Answer to Question 1

Answer: C

Answer to Question 2

electronic document management (EDM)
electronic document management
EDM

[humphriesbr@me.com]

Gracias!

[covalentbond]

Thanks for the timely response, appreciate it