This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 17-24 QUIZ Answer Key P 1724 (LO2) Identifying Overhead Cost Activities1.Employee training: Employees need special training to work with each of the companys different products.Product LineBecause the employee training is specific to each individual product, thetraining cost goes up as the number of different products increases. This is a product-line activity.2.Product inspection: No inspection is performed on each unit produced. Instead, a sample of units from each production batch is inspected.Batch LevelThe product inspection takes place each time a new production batch is run. Accordingly, the inspection cost goes up as the number of batches increases. This is a batch-level activity.3.Electricity: The production machines are powered by electricity.Unit LevelThe more units that are produced, the more the production machines mustbe run and thus the higher the electricity cost. This is a unit-level activity....
View Full Document
This note was uploaded on 10/16/2011 for the course ACC 240 taught by Professor Sidneyford during the Fall '10 term at Chandler-Gilbert Community College.
- Fall '10