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Chapter UK / Exercise 14
Enhanced Microsoft Office 2013: Illustrated Fundamentals
Cram/Duffy
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AF 3112 MANAGEMENT ACCOUNTING 2 Week 3 exercises 5-2 Inaccurate costing can result in two deviations. Name the two deviations and explain how they can impact a business.
5-7 Differentiate between simple costing systems and ABC systems.
5-16 Conroe Company is reviewing the data provided by its management accounting system. Which of the following statements is/are correct? I. A cost driver is a causal factor that increases the total cost of a cost object. II. Cost drivers may be volume based or activity based. III. Cost drivers are normally the largest cost in the manufacturing process.
1 SOLUTION Explanation Choice "2" is correct. The question asks which of a series of statements is/are correct. "None of the above" is not available, so one of the statements at least is correct. Statement I says that a cost driver is a causal factor that increases the total cost of a cost object. Statement I is correct. Statement II says that cost drivers may be volume based or activity based. Cost drivers may be volume based, activity based, or based on any number of other operational characteristics. So, that is two out of three. Statement II is correct. Statement III says that cost drivers are normally the largest cost in the manufacturing
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Enhanced Microsoft Office 2013: Illustrated Fundamentals
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Chapter UK / Exercise 14
Enhanced Microsoft Office 2013: Illustrated Fundamentals
Cram/Duffy
Expert Verified

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