ACCT 6311-Under a traditional product costing system, overhead is applied
by | Mar 18, 2020 | Uncategorized
1. Under a traditional product costing system, overhead is applied using a predetermined overhead rate (PDOHR). In an ABC system, the rate used to apply overhead for each activity pool is known as a(an)
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Applied OH rate
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Cost Allocation Rate
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Cost Driver/Unit
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Cost Based Plus Price
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2.
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If you have 2 different projects and each project has a different initial investment, which capital budgeting technique would be the best choice to use in your selection process?
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net present value
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profitability index
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payback period
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regression analysis
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3.
A company has a credit policy of 2/10, n/30. If the calculated Days Sales Receivable ratio was 22 days in the prior year and is now 28 days, what statement would be most accurate?
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The company’s collection time has improved from the prior year, but is still above the stated collection policy.
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The company’s collection time has declined from the prior year, but is still below the stated collection policy.
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The company may have an issue with short-term solvency based on their ratio calculation
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The company’s short-term solvency appears to have improved from the previous year.
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