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
reaction system of photosynthesis
Procedures and Diagnostic Tests Related to the Male Reproductive System
Pathology of the Digestive System
The primary ignition system is used to trigger and therefore create the secondary (high-voltage) ...
The human digestive system
The complement system