( 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 . In- Sync 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