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1. The plant manager's salary is an example of a:
a. Unit-level activity
b. Batch-level activity
c. Product-level activity
d. Organization-sustaining activity
(Please explain)
2. The basic idea underlying responsibility accounting is that each manager should be held responsible for the overall profit of the company to ensure that all managers are acting together. Please explain.
3. When using data from a segmented income statement, the dollar sales for a segment to break even is equal to:
4. Under absorption costing, fixed manufacturing overhead cost is not included in product cost. True of False. Explain
5. Organization-sustaining overhead costs should be allocated to products just like unit-level and product-level activities. True or False. Explain
6. Because absorption costing emphasizes costs by behavior, it works well with cost-volume-profit analysis. True of False. Explain.
Prepare the journal entry necessary to record the depreciation expense on the building in 2011. Compute depreciation expense on the machinery for 2011.
The FASB Accounting Standards Codification
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