ACCT 434 Course Great Wisdom / tutorialrank.com ACCT 434 Course Great Wisdom / tutorialrank.com | Page 2

(TCO 1) The average cost data are for In-Sync Fixtures Company's (a
retailer) only two product lines, Marblette and Italian Marble.
Marblette Italian Marble
Purchase volume 20,000 1,000
Purchase cost per unit $50 $250
Shipments received 12 12
Hours used per shipment * 5 3
* These data were accumulated after a careful activity analysis.
Currently, In-Sync Fixtures uses a traditional costing system with
indirect costs allocated using purchased cost of goods as a basis. InSync Fixtures is considering refining the allocation of its receiving
costs of $40,000. It realizes that the Italian Marble is heavier and
requires more care than the Marblette but that the Marblette comes in
larger volume.
Which statement can be made using the results of the activity analysis
performed by In-Sync Fixtures?
2. Question :
(TCO 1) The allocation of indirect costs in an activity-based costing
system
3. Question :
(TCO 1) Evaluating customer reaction of the trade-off of giving up
some features of a product for a lower price would best fit which
category of management decisions under activity-based management?
4. Question :
(TCO 1) A company produces three products; if one product is
overcosted then